Based on the purchase price of the desired home of $250,000.00, down payment of 10%, term of 30 years, interest rate of 5%, 1 points, monthly private mortgage insurance of $100, closing costs of 3, and annual property taxes and insurance of 1.25%, you will need a minimum monthly income (before taxes and expenses) of $1,568.27. You will need approximately $34,750.00 to qualify for the loan. Furthermore, the maximum amount of debt that you can service is $392.07. Key factors to look at involve your monthly housing expense of $1,568.27, which is calculated by adding your mortgage payment of $1,207.85 to your taxes and hazard insurance of $260.42 and monthly mortgage insurance of $100.