When you go to your mortgage lender and hand in your application for a mortgage loan he will review your application from two perspectives. There are two major guidelines which are followed by the vast majority of mortgage loan lenders.

The numbers related to mortgage loan rates and estimates are pretty much ballpark and vary from one mortgage company to another mortgage lending institution.

1. You should spend no more than 28% of your gross income (monthly earnings are implied) on keeping your house. It implies different kind of taxation, hazard insurance, etc. However regular utility bills get exclueded from that list and don’t influence your home mortgage loan rate.

2. Your mortgage loan principal payment plus your interest payment, and different types of financial debts and long term commitments should not exceed the point of 36% of your gross income (monthly income is implied again).

Mortgage lenders and loan officers carefully study the figures provided in your mortgage loan application, they see if it’s your first or second mortgage, review your previous credit history, etc.