All Home Loan Info » Debt To Income Ratio

How Much Can I Borrow For A Mortgage?

admin — Sun, 27 Dec 2009 06:03:15 +0000

A mortgage is a loan secured by property or real estate. A mortgage is usually paid back with monthly payments that usually include principal, interest, insurance, and taxes. The principal is the amount of the loan, and the interest is what it costs you to borrow the money for the month. The taxes are a percentage of the value of the property and remitted to your local government, while the insurance covers the mortgage amount in case of default by the borrower as well as property loss from hazards. The tax and insurance monies may be collected and held in escrow to be paid annually.

How do banks decide how much mortgage money you can borrow? They base their decision of the amount of a mortgage on their estimate of your ability to repay the loan. This estimation is based on your income, available cash, debt, and your credit history. The amount of money banks will loan is usually in the neighborhood of two to four times your annual salary. When applying for a mortgage your debt to income ratio can be a limiting factor. Banks first look at your front-end ratio or how much of your income will be devoted to paying your mortgage. About 28% of your annual income is the amount most banks feel a person can afford to pay for a mortgage, and this of course would cover the amount of the principle, interest, and any escrow payments. You can calculate this yourself by taking your annual salary and multiply by .28 and then divide by 12, this will give you an estimate of the maximum mortgage amount you could be offered.

The back-end ratio will also be taken into consideration as well. This is the amount of your gross income is required to pay all your debts, which could include car payments, credit card payments, personal loans, student loans, alimony, and child support. The amount of your total payments should not exceed 36% of your gross income. This can also be calculated by taking your annual salary and multiplying by .36 and dividing by 12. This will give you your maximum allowable amount of debt.

Well I hope this helps clear up a little of the confusion you may have regarding mortgages, and how much you may be able to borrow.

For even more info on mortgages visit How Much Money Can I Borrow For A Mortgage?

Article Source:http://www.articlesbase.com/mortgage-articles/how-much-can-i-borrow-for-a-mortgage-1629101.html

Tags:Alimony,Amount Of Money,Annual Salary,Applying For A Mortgage,Car Payments,Credit Card Payments,Debt To Income Ratio,Escrow Payments,Gross Income,How Much Can I Borrow For A Mortgage,Limiting Factor,Maximum Mortgage,Money Banks,Monies,Mortgage Amount,Mortgage Money,Personal Loans,Principal Interest,Principle Interest,Student Loans

Take the proper Steps to Get Your FHA Mortgage today

admin — Sun, 06 Dec 2009 08:27:58 +0000

FHA Mortgage Loan for Florida Homeowners

Take the proper Steps to Get Your FHA Mortgage today

Other FHA loan Advantages Include:

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price
Gift for down payment and closing costs allowed.
No reserves or required.
FHA regulated closing costs.
Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

Minimum FICO credit score of 540.
FHA will allow a home purchase 2 years after a Bankruptcy.
FHA will allow a home purchase 3 years after a Foreclosure.

Easier Debt Ratio & Job Requirement Guidelines such as:

Higher Debt Ratio’s than other home loan programs.
Less than two years on the job is allowed.
Self-Employed individuals o.k.

Apply for an FHA mortgage at

www.FHAmortgageFHAloan.com

Purchasing a Florida home is one of life’s major landmarks and for some, it is even a dream come true. At FHAmortgageFHAloan.com we understand the importance of this decision and it is our goal to make your acquisition into home ownership memorable. Regardless of whether this is your first Florida home or your third Florida home purchase we will do our best to ensure that getting you into your new Florida home is a pleasant and memorable experience.

When you begin to seriously consider purchasing a new Florida home it is important that you follow some simple steps to make sure that the Florida home process goes smoothly.

The first thing you should do is an analysis of your debt to income ratio. This important step will let you know what type of Florida home you can afford and how much your current obligations will allow you the apply for based on your monthly income and expenses.

The next important step in purchasing a new Florida FHA home loan is to get pre-approved for an FHA home loan. The peace of mind that comes with knowing that your FHA mortgage loan and credit report have been approved will allow you to shop for your new FHA home with confidence. And when you find a Florida home and are ready to make an offer the fact that you have already been pre qualified for your FHA loan amount will give the seller confidence in you as a serious buyer.

About FHA Mortgage Loans

FHA guarantees eligible Florida home loan applicants the ability to obtain FHA home loans with 3.5% down payment. FHA mortgage loans can be fully assumable. FHA mortgage loan limits apply depending upon where the Florida home is located

FHA mortgage loans provide for low down payments and the easiest qualifying guidelines to make it easier for Florida homebuyers qualify! FHA home loans are popular with Florida first time home buyers but are equally liked by moving up buyers and Florida homeowners looking for a Florida Rehabilitation loan. With an FHA Mortgage loans you can borrow up to 96.5% of the purchase price of the Florida home.

The advantages of a FHA insured mortgage product to a Florida first time home buyer are many. A Florida homebuyer may apply for an FHA mortgage loan to purchase a Florida home with little money out of pocket. FHA home loan insurance permits FHA mortgage lenders to make mortgages for Florida first time homebuyers without risk.

With an FHA home loan here are no income limitations or minimum credit score requirements when FHA insured mortgage. This is why FHA loans are among the easiest mortgage loan to qualify for and almost anyone can qualify as long as they have a reasonable credit history and can afford the monthly FHA mortgage payments. You can also combine FHA home loan programs with many Florida first time homebuyer down payment programs.

FHA Streamline mortgage Refinancing

The FHA mortgage has permitted FHA streamline refinances on FHA insured home loans since the early 1980′s. The FHA streamline refinance refers only to the amount of documentation and underwriting that needs to be performed by the FHA mortgage lender, and does not mean that there are no costs involved in the transaction.

The basic requirements of a “streamline FHA mortgage refinance” include:

The FHA mortgage loan to be refinanced must already be insured by FHA.
The refinance is to result in a “lowering” of the borrower’s monthly principal and interest payments.
No cash may be taken out on mortgages refinanced using the “streamline” refinance process.
The FHA mortgage to be refinanced should be current (not delinquent).

FHA mortgage Lenders may offer FHA streamline refinances and include the closing costs into the new FHA mortgage loan amount. This can only be done if there is sufficient equity in the Florida. FHA Streamline refinances can also be done without appraisals, but the new FHA home loan amount cannot exceed what is currently owed, that is FHA closing costs may not be added to the new FHA mortgage with those costs either be paid in cash or through the premium rate as described above.

Article Source:http://www.articlesbase.com/mortgage-articles/take-the-proper-steps-to-get-your-fha-mortgage-today-1546255.html

Tags:3 Years,Bankruptcy,Closing Costs,Debt Ratio,Debt To Income Ratio,Easier Debt,Fha Home Loan,Fha Loan,Fha Mortgage Loan,Fico Credit Score,Florida Homeowners,Foreclosure,Home Loan Programs,Home Ownership,Landmarks,Memorable Experience,Mortgage Fha,Peace Of Mind,Proper Steps,Simple Steps

Bad Credit Mortgage Refinance Loan- How To Get The Maximum Benefits

admin — Sat, 21 Nov 2009 09:38:13 +0000

If you think getting the best results from bad credit mortgage refinance loan option is as difficult as finding pearl from an ocean, then its time to change your thinking. It is so because now it is as simple as getting a bread from a nearby store.

Many people who are not well equipped with the right information on mortgage refinance loan with bad credit usually find it difficult to get the best results from it. So if you are also facing similar problem and if you want to know the best way to get maximum benefits from mortgage refinance loan option, the following points can help you in the right way.

Check Your Credit Rating

To begin with, it is very important to first have a look on the credit ratings. You should try to check your ratings thoroughly to have a clear picture of your debts.

Pay Your Debts

Once you get the clear picture of your debts and if it is possible for you to pay some of those debts, then you must pay them first. This will help in improving the debt to income ratio which in turn would result in availing extra benefits afterwards.

Clean Your Ratings

Just like paying off debts is considered very important, in the same manner, it is also considered very important to clean up the ratings. Often, report contains various mistakes which put an adverse impact afterwards and so it is advisable to get them away as soon as possible.

Choose The Right Source

After checking the ratings and cleaning them, the next important thing is to choose the right source for availing the mortgage refinance loan option.

So by keeping the above mentioned points in mind, you can get the maximum benefits from bad credit mortgage refinance loan option.

By following good advice, one can easily get maximum benefits from Bad Credit Mortgage Refinance Loan option. You can seek help from this website at http://www.bad-credit-home-mortgage-loan-refinance.com/things-to-do-before-you-get-a-bad-credit-mortgage-refinance-loan.php for more information.

Article Source:http://www.articlesbase.com/mortgage-articles/bad-credit-mortgage-refinance-loan-how-to-get-the-maximum-benefits-1486429.html

Tags:Adverse Impact,Bad Credit Home Mortgage Loan,Bad Credit Mortgage,Bad Credit Mortgage Refinance Loan,Credit Rating,Debt Ratio,Debt To Income Ratio,Extra,Good Advice,Home Mortgage Loan,Loan Option,Loan Refinance,Loan With Bad Credit,Maximum Benefits,Mortgage Refinance,Paying Off Debts,Php

Obama’s Loan Modification & Mortgage Refinance Plans

admin — Wed, 18 Nov 2009 01:58:16 +0000

The Obama administration generated a simplified loan modification program that aims to reduce homeowner’s monthly mortgage payments based on their monthly gross income. There are two types of programs under Obama’s plan: The Home Affordable Modification Program and Home Affordable Refinance Program for mortgage refinancing.

How will Obama’s Loan Modification Plan Work?

Servicer will reduce monthly mortgage payments of the borrower to not more than 38% of borrower’s monthly gross income.
The government will assume part of the principal amount and manage other cutbacks to hit threshold of 31% on the borrower’s monthly gross income.
When 31% is achieved, the borrower enters trial period for 3 months.
If the borrower succeeded in paying timely mortgage payments during the trial period, a new fixed rate will take effect for the new modified loan that will run for 5 years.
Benefits such as cash incentives are thrown in to lure lenders/investors, servicers to join, and for borrowers to pay on time from trial period until the term ends (5 years).

Who can qualify for Obama’s Home Affordable Modification Program?

Only owner-occupied homes are eligible.
Applicant must satisfy the Front-End Debt to Income (DTI) ratio of 31% to the monthly gross income set by the program. Total PITIA (principal, interest, taxes, insurance) and HOA (excluding mortgage insurance premiums) must hit this threshold.
Applicant must satisfy the Back-End Debt to Income ratio of less than 55% to the monthly gross income which is the monthly total debt payable (eg, credit cards, car payments, student loans, etc.).
Homeowners that have limited liquid assets and serious substantial income loss.
Loan initiated on or before January 1, 2009.

Home-owners with unpaid principal mortgage balance equal to the following:

1 Unit: $729,750
2 Units: $934,200
3 Units: $1,129,250
4 Units: $1,403,400

Take note that the mortgage applied can be modified under this program only once. Your untimely records of delinquent balances will also be waived. If faced with foreclosure, proceedings will be temporarily suspended while undergoing the trial period. Should the applicant fail, foreclosure measures will resume. This is a charge-free program. New borrowers will be accepted until Dec. 31, 2012. Timely mortgage payers are automatically disqualified from this program.

What To Prepare If You Qualify For Obama’s Mortgage Plan And How?

If employed, you must present substantial documents to validate income loss, such as, recent pay slips and income tax return.
If self-employed, third party documents for profit and loss statement must be provided.
Substantial information of assets.
Account balances on all monthly payments and monthly housing expenses, such as, credit cards, student loans, second mortgage, insurance and taxes, etc.
HUD-counselor approved document that states counseling commitment must be submitted. Only then shall the loan modification take effect.

It is advisable to collect and present all these to the loan servicers for initial assessment. They can help you determine early if you can be considered for a loan modification.

What Are The Benefits Of Obama’s Loan Modification Program?

If you qualified for Obama’s loan modification modification, the following benefits will take effect:

Servicer Incentive Payment of $1,000 is paid to the servicer for every eligible loan modified.
Pay for Success fee of $1,000 additional payout each year for three years to the servicer if the borrower pays timely from trial period of three-months until term ends. A fixed rate for five years will take effect after trial period.
Pay-for-Performance Success Payment of $1,000 is given to the borrower each year for 5 years which will be redirected to the principal amount provided that borrower follows program guidelines.
For every successful modification, a one-time incentive of $1,500 and $500 shall be given to lenders/investors and servicers, respectively. A successful loan modification means that the borrower completely made timely mortgage payments during programs term.

Who can qualify for Obama’s Home Affordable Refinancing Program?

Home being refinanced must be a primary residence.
Current loan must be secured by Fannie Mae or Freddie Mac. Contact them at 1-800-7FANNIE, or 1-800-FREDDIE to inquire or log on online at http://www.fanniemae.com/homeaffordable.
Applicants must have current and timely mortgage payments for the last 12 months.
First mortgage payable must not exceed 105% of your home value.
Must have a stable income.

Note that, mortgage refinancing will be at fixed rate for 15 or 30 years. The interest rate is based on the market rate upon closing. No prepayment penalties will be charged but, applicant will pay for fees related to the mortgage refinancing.

If you are financially incapacitated while indebted to a home of diminishing value, you probably will not qualify for Obama’s loan modification programs.

Get your Free Do It Yourself Loan Modification Kit. loan modification kit includes everything you need to complete a loan modification on your own. It will teach you how to negotiate with your lender and most importantly what NOT to say to your lender. The secret to a successful loan modification is how you present your case to the lender. This DIY loan mod kit will explain the loan modification negotiation process in explicit detail.

Visit our website for How to articles, mortgage calculators, free sample hardship letters, foreclosure timelines, and dozens of informative articles on loan modifications and foreclosure. Stop by to check out our growing library of free financial kits. We currently have bankruptcy kits, credit repair, and loan mod with more on their way!

FreeDIYkits “Helping Homeowners Help Themselves”

Article Source:http://www.articlesbase.com/mortgage-articles/obamas-loan-modification-mortgage-refinance-plans-1470951.html

Tags:Borrowers,Car Payments,Cash Incentives,Debt To Income Ratio,Eligible Applicant,Gross Income,Liquid Assets,Loan Modification,Monthly Mortgage Payments,Mortgage Balance,Mortgage Insurance Premiums,Mortgage Refinancing,Obama,Principal Interest,Principal Mortgage,Refinance Mortgage,Student Loans,Substantial Income,Trial Period,Unti

All Home Loan Info » Debt To Income Ratio

How Much Can I Borrow For A Mortgage?

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