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For the Texas Ratio calculation, a bank's available capital is the sum total of its equity capital and its loan loss reserves. Equity capital is essentially the book value of the bank -- its total assets minus its liabilities.
One way that you can calculate the affordability of your next home is to use this formula: median home price to median household income ratio. In Frisco, TX the median home price is $249,000 and $108,428 is the median household income. As a result, the home price to income ratio in Frisco, TX is 2.3x, which is 7% lower than the Texas average. In order to determine the home affordability ratio, you would divide the median home price by the median home income.