How much home can you afford?
Some factors used to determine that amount:
Image
Credit Score/Rating – The higher your credit score, the more likely you’ll qualify for a lower interest rate.
Interest Rate – The lower your interest rate, the more money you can borrow at the same monthly loan payment amount.
Down Payment – The more money you can pay up front, the less your loan amount will be. Additionally, if your down payment is 20% or more of the property value, you will not need to pay mortgage insurance, resulting in lower monthly mortgage-related expenses.
Debt-To-Income Ratios – There are two debt-to-income ratios that are used to determine your maximum loan amount:
Housing ratio (or front-end ratio) is the percentage of your gross monthly income that is dedicated to paying your monthly mortgage-related expenses (principal and interest, property taxes, homeowner’s insurance, mortgage insurance). Generally, this ratio should be 28% or lower.
Total debt ratio (or back-end ratio) determines the percentage of your gross monthly income that is used to pay your combined monthly debts (mortgage-related expenses, credit cards, car loans, student loans, child support, etc.). Generally, this ratio should be 36% or lower.
Call today to learn more about how much home you can afford to buy!
Sarah Highland
Sarah Highland
Senior Loan Officer
NMLS ID #408785
Cell 361-739-7394
Fax 866-896-8368
Send an email Email Visit my Website Website
Third Coast Home Loans, LLC
Third Coast Home Loans, LLC
5337 Yorktown Blvd #303 - Corpus Christi, TX 78413
Nationwide Mortgage Licensing System & Registry:
Third Coast Home Loans, LLC, NMLS ID #1013927 (www.nmlsconsumeraccess.org)
This is not a commitment to lend or extend credit. All loans, credit and collateral are subject to approval. Restrictions and conditions may apply. Terms, rates, data, programs, information and conditions are subject to change without notice, and may not be available in all areas.