What is a good debt-to-income ratio for a mortgage? The lower your DTI, the better—this means less of your income is tied to recurring debt payments, and you’ll likely be more able to continue making payments on time even if you experience a minor financial setback. Borrowers with hig...
How debt-to-income ratio (DTI) affects mortgages Learn what your debt-to-income ratio (DTI) is, how to calculate it and how it impacts mortgage, refinancing and lines of credit so you can qualify for the home of your dreams. Read more ...
Home Advantage Program:This program provides a 30-year fixed-rate mortgage with options to combine with down payment assistance up to 4% of the loan amount. The criteria is straightforward: you must have a minimum of 620 credit score, a maximum debt-to-income ratio of 50%, and annual inco...
What parts of my finances does a mortgage lender review?What parts of my finances does a mortgage lender review? A lender will check your credit score and history, your debt-to-income ratio, which is a measurement of the amount of debt you have compared to your income, and take a genera...
Your mortgage balance divided by your current home value equals your loan-to-value ratio. The lower this ratio is, the more equity you have. This gives lenders more of a cushion and more confidence to offer you a lower interest rate. Debt-to-income ratio. Your debt-to-income ratio equals...
Mortgage lenders use a shortcut to calculate mortgage affordability. They look at a number called your ‘debt-to-income ratio’ (DTI). DTI shows your monthly debt burden as a percentage of your gross (pre-tax) monthly income. There are two components to your DTI: ...
type of loan, a lender will also check your credit and debt-to-income ratio. If you qualify for a home equity loan, your loan funds are usually delivered in a lump sum after the closing. Home equity loans are essentially a second mortgage on your house, with fixed-rate monthly payments...
What parts of my finances does a mortgage lender review? A lender will check your credit score and history, your debt-to-income ratio, which is a measurement of the amount of debt you have compared to your income, and take a general look at how much money you have in checking and savi...
Is a conventional (fixed-rate) mortgage right for me? Do you have a credit score of 620 or higher, and a healthy savings that will allow you to afford a generous down payment? And is your debt-to-income ratio lower than 50%? If so, a conventional (fixed-rate) mortgage may be the...
We define mortgage, and other industry terms for home buyers. Discover helps you understand common mortgage terms and meanings.