Sam Coleman
Home Loan Specialists, Inc.
Do The Mortgage Right!
Always Call Sam!
1-866-SAM-4-YOU
(1-866-726-4968)
Mortgage Update
"The Best Rate Is Not Always The Best Deal!" Always Call Sam!
1-866-SAM-4-YOU (1-866-726-4968)
1-866-SAM-4-YOU (1-866-726-4968) Many folks seeking to purchase a home learn that they have too much of a car payment. Big monthly vehicle obligations can put you in a nice ride, but if your income isn't sufficient, the car can really reduce the home loan amount you can afford. You can apply the above formula for debt ratios and determine your status.
Loan to Value is the amount of your mortgage loan compared to the value or sales price of the property. Loans with high LTV's often have adjustments to the interest rate. Mortgage Insurance or PMI may also be required.The LTV, your credit score and the loan program you seek can also impact your rate and costs. .
Loan To Value (LTV)
Too Much Car
Did you know that it may be possible to NOT count your student loan debt in certain situations? If you are still attending school and the payments on your loans are deferred, you may be able to exclude these debts when calculating your debt ratio. Please call me for details.
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Student Loans
A Division Of Mortgage 1. Inc.
Sam Coleman - Michigan Loan Officer License 66789Home Loan Specialists, Inc., Corporate Offices
Home Loan Specialists, Inc., Corporate Offices 135 E Main St., PO Box 132, Manchester, MI 48158 36139 Schoolcraft Rd., Livonia MI 48150
Phone 734-428-8944 Fax 734-527-6114 734-524-0400 Fax 734-524-0600
734-524-0400 Fax 734-524-0600Debt Ratios
Your debt ratio is very important in securing a mortgage. The standard underwriting formula of 28% a borrower's monthly income for housing and 38% of income for all debt is a nice way to determine how much you can afford to pay per month on a mortgage. The basic idea works like this:
Monthly earnings $500028% for housing = $140038% total debts = $1900In this example the borrower has $500 per month for car payments, credit cards and other loans etc. The formula does not generally include payments for food, utilities and other routine expenses.
In situations where borrowers have great credit and reserves, the formula might be expanded to between 45% and 50% of total monthly income on some programs. In my opinion, it is a good idea for most buyers to stay within the 28% and 38% range.
To learn more give me a call. We can figure out your debt ratios and do the
Pre-Qualification at no cost!
Something To Consider
If you are a two income family, it may be wise to use only one earning source to establish your debt ratio. Two qualifying incomes can increase your borrowing power, but if one of your funding sources is lost, it may become difficult to balance all of your obligations. This approach is conservative, but the concept is valid, if you can swing things using only one income!
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1-866-726-4968
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"The Best Rate Is Not Always The Best Deal!"
