How to Calculate Your Monthly Income for Mortgage Payments

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Most lenders will be able to give you the same type of loan that they'll give to any W2 employee. They look at your last two years of tax returns and then look at your monthly income. Based on that monthly income, they calculate how much they would be willing to give you for a mortgage payment based on what's called their front-end ratio and back-end ratio.

#455: Yvette recently retired with the goal of reaching a $10,000 monthly income from her real estate investments. Should she put her money toward debt payoff or portfolio expansion?

Carly wants to buy a second home and convert her current home to a rental. What are the pros and cons of tapping into existing equity versus saving cash for a down payment?

An anonymous caller plans to move back to her touristy hometown in six to seven years. Is it smart to buy something now and take advantage of a thriving Airbnb market?

I tackle these three questions in today’s episode.

Enjoy!

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