Mortgage and Refinancing Information Channel:
We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
How Much Home Loan Can I Afford?
Have you ever asked yourself how much home loan can I afford? If you know how much of a payment you qualify for before shopping for a home, your purchase will go much smoother and it can save you a lot of headaches.
How would you like to find the perfect place to live then not know if you can qualify for the loan? Long before you even start looking for your home, you need to know how much home loan you can afford.
Many factors are involved to qualify for a loan. Each lender has different guidelines and there are a multitude of different types of mortgage loans.
Jumbo mortgage loans will be harder to qualify for than a conforming mortgage loan. Other factors like down payment, loan amount and what is considered a good credit score will also make a difference.
There are some general guidelines lenders use that will help answer your question, how much home loan can I afford? These are only rough estimates, but you can get a good idea if you will qualify for a home loan and how much of a monthly payment you can afford.
1. Your mortgage payment, taxes, home owners insurance and any other fixed housing expense should be between 25% and 28% of your total gross (before taxes) monthly household income.
2. Your monthly housing costs (the total figure above) plus any other long term debt (monthly expenses extending longer than 11 months) such as car or boat loans, credit cards or installment loans should not exceed more than 40% of your gross (before taxes) monthly household income.
These figures can get higher if you have a higher credit score because you are a better risk to a lender and are more likely to pass their home loan guidelines.
What is considered a good credit score to a lender usually starts with a score of 680 and above. Lenders vary but a 680 score and above means you will likely get the very best interest rates and terms on your loan.
Lenders use the three major credit bureaus; Experian, Trans Union and Equifax to get an average credit score for you. It's a good idea to check your credit reports from all three major credit bureaus before you qualify for a home loan.
That way if you find any mistakes, you can clear them up before a lender sees your credit report. Once you get your credit report check carefully to see that everything is accurate.
If you find any errors, dispute it immediately with the three major credit bureaus. It takes time to get the errors off of your credit report. If you have a clear credit report before you apply for a loan you are more likely to have a pleasant experience instead of a nightmare.
The best way to know if you will qualify for a home loan is talk with a mortgage professional. This is what they are trained to do and they can give you much more accurate figures so there are no surprises when you go to make an offer.
So now when you are ready to qualify for a loan you'll know exactly how much home loan you can afford.
Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative facts that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html
MORE RESOURCES updated Wed. June / 07 / 2023
Today's Mortgage, Refinance Rates: June 6, 2023 | 30-year Rates Increase 1.7% Since Last June - Business Insider
Today's Mortgage, Refinance Rates: June 6, 2023 | 30-year Rates Increase 1.7% Since Last June Business Insider
With high interest rates, does it make sense to buy that house now? ABC 10 News San Diego KGTV
It May Cost More to Refinance a Mortgage Than You Think Yahoo Finance
The Great Pandemic Mortgage Refinance Boom - Liberty Street Economics Liberty Street Economics -
UK mortgage borrowers face painful refinancing, warns think-tank Financial Times
This Is the No. 1 Thing to Remember About Higher Mortgage Rates The Motley Fool
Compare Today’s Refinance Rates | U.S. U.S News & World Report Money
How to get a low-cost mortgage refinance Yahoo Finance
What is mortgage refinancing and how does it work? Yahoo Finance
The Fed’s man-made housing market recession hit so hard that 4 real estate titans just lost their Fortune 500 status - Fortune
The Fed’s man-made housing market recession hit so hard that 4 real estate titans just lost their Fortune 500 status Fortune
What Is A Home Equity Loan? Zing! Blog by Quicken Loans
Total Household Debt Reaches $17.05 trillion in Q1 2023; Mortgage ... - Federal Reserve Bank of New York
Total Household Debt Reaches $17.05 trillion in Q1 2023; Mortgage ... Federal Reserve Bank of New York
Fixed rate cliff spurs record mortgage refinancing MacroBusiness
Refinancing your mortgage could save you thousands — here are some of the best refinance lenders - CNBC
Refinancing your mortgage could save you thousands — here are some of the best refinance lenders CNBC
How does mortgage refinancing work? CBS News
Should I Refinance My Mortgage? - Buy Side from WSJ The Wall Street Journal
Here’s how sharply mortgage refinancing has dropped off Yahoo Finance
Today's Mortgage, Refinance Rates: May 29, 2023 | Rates Still High Business Insider
Today’s 30-year mortgage refinance rates hit lowest levels in 15 days | Oct. 28, 2022 - Fox Business
CFPB Launches Effort to Spur New Opportunities for Homeowners ... - Consumer Financial Protection Bureau
CFPB Launches Effort to Spur New Opportunities for Homeowners ... Consumer Financial Protection Bureau
Analysis | It Will Pay to Wait to Refinance Your UK Mortgage The Washington Post
Why Older People Can’t Get New Mortgages The New York Times
Small Business Loan Refinance Bankrate.com
Should you refinance your mortgage to pay off debt? New York Post
VA refinance rates - current VA loan refinance rates today Business Insider
Current 15-year refinance rates today Business Insider
Refinance Closing: An Overview Zing! Blog by Quicken Loans
What Credit Score Is Needed To Refinance a House | Chase Chase News & Stories
Compare Current 30-year Refinance Rates Business Insider
7 Refinancing Programs for Seniors Total Mortgage