How to Calculate Your Qualifying Ratio
Your qualifying ratio, also called the debt-to-income (DTI) ratio, is one of the three main factors in getting a loan. The other two are the Loan-to-Value ratio (considering down payment or equity), and your credit score. There are many other factors in getting a...What an Increase in Interest Rates Means to You
Rising interest rates can drastically reduce the max purchase price you qualify for. Depending on the loan amount, a rise in rates of just .25% can potentially cost you hundreds of dollars (in particular with the high loan amounts in our Bay Area). But even with...Advantages and Disadvantages to Interest-Only Loans
The new “Qualified Mortgage” Rule will be taking place in January 2014, which will result in the discontinuation of Interest-Only loans. There may be a small handful of portfolio lenders that will continue to offer interest-only loans, but for the most part, they...An Upcoming Change to the Lending Industry: The “Qualified Mortgage” Rule
Earlier this year, the Consumer Financial Protection Bureau (CFPB) released the details for the “ability to repay” and “qualified mortgage” rule. The rule will go into effect on January 10, 2014. “[The Qualified Mortgage] is intended to create a class of ‘safer’...Highlights and Features of FHA Financing
Although FHA (government-insured) loans are more expensive than Conventional, there are many reasons why homeowners and homebuyers go this route of financing. The most common is for its minimal down payment requirement, but there are other reasons. See below for a...Jumbo Loan Programs: A 10/1 Adjustable Rate Mortgage (ARM) versus a 30 Year Fixed
A Jumbo loan (any loan amount exceeding $625,500) is common in our high-cost area. Jumbo loans are considered more risky to lenders, so their interest rates are higher and guideline requirements stricter. You have choices in Jumbo loan programs – your decision can...Emergency Preparedness: Guest Blog Post by Melissa Stacey of Feeling Organized
This blog post on Emergency Preparedness is shared by professional organizer Melissa Stacey. She specializes in organization for your home, office and small business. She works with each client to create a unique organizing system that is geared toward their specific...How the Government Shutdown Will Affect Your Loan
The government shutdown has severe ramifications for many people. One that will affect your loan in process is that the IRS will not be validating tax returns. Part of the loan process is for the lender to validate your income directly with the IRS. They match what...Be Competitive in Your Offer to Purchase a Home
Even though housing supply and demand has leveled off compared to the earlier part of this year, demand does still outweigh supply (the inventory of homes on the market). So it is critical to be as competitive as possible when you are up against other buyers putting...Loan Calculator
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