# Mortgage Math for Monthly Gross Income

#### Sylvia

“I want to take advantage of the lower interest rates!” Sylvia shared with her wealth advisor. “How do I know if refinancing is my best option?”

“Let’s contact a trusted Mortgage Loan Originator (MLO) and see what the current rates are, then discuss your options.”

One of the first steps in the purchase or refinance application is to calculate monthly income before taxes – we get that information from paystubs if your are an employee or from your profit and loss statements if you are self employed.

Since Sylvia has been at her place of employment for over 2 years, we will use her paystubs.

How would we calculate her Gross Monthly Income?

Pay Rate x Number of Hours Worked = Weekly Pay (\$62.55 x 40 = \$2502)

Weekly Pay x Weeks Worked in a Year = Yearly Income (\$2502 x 52 = \$130,104)

Yearly Income / Twelve months = Gross Monthly Income (\$130,104 / 12 = \$10,842)

Sylvia’s Gross Monthly Income is \$10,842

#### George

George called recently “I have a seasonal career. I only work April through November (26 weeks) as a landscape specialist. I make about \$40,000 in that time frame and then collect unemployment December to May. I want to know how much home I could qualify for.”

“Is the \$40 grand with or without the unemployment?”

“Without the unemployment.”

“Great, in most cases we cannot use unemployment benefits as income.”

How would we calculate his Gross Monthly Income from the information given?

Yearly Income / Twelve months = Gross Monthly Income (\$40,000 / 12 = \$)

George’s Gross Monthly Income is \$3,333.33

What is your Gross Monthly Income?

Contact me today if you want to calculate your Gross Monthly Income together.

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