Mortgage Mess: How to Determine Your Exposure to the Subprime CrisisThe closest you've come to a subprime mortgage is what you've seen on the nightly news. So why is your portfolio taking a hit?Polyak, Ilana
Step 1: Determine the right type of mortgage for you Before you start to shop for mortgage offers, it’s important to determine whattype of mortgageyou want to apply for and what might be best for your current financial situation, as well as your short- and long-term goals. Some of the...
When judging risk, the lender considers how likely you are to fall behind on payments (or stop making payments altogether), and how much money the lender could lose if the loan goes bad. The major factors are credit score and loan-to-value ratio. Credit score The lowest mortgage rates go...
That means you'll want to get the lowest rate possible. Locking in an interest rate means you'll get a guaranteed rate for a set time. During this time period, you should be able to close your loan. A knowledgeable lending professional can help you determine the best timing for locking ...
4 steps to get a mortgage when you’re self-employed If you’re self-employed, the loan approval process is similar to that of a W-2 salaried applicant: You’ll need certain documentation to verify your income and prove to the lender that you’re creditworthy. 1. Determine if you’re ...
in dollar terms. If they wish to determine their net effective mortgage rate, they could look at that $1,606 as a percentage of their outstanding mortgage balance, and deduct that percentage from their rate. For example, if they owe$500,000on their home, the $1,606 translates to ($1,...
You may be eligible for one or more types of mortgages, depending on your income, credit history and credit score, and employment.Mortgage lenderscan help you analyze your finances and determine the most suitable loan products. They can also help you better understand the qualification requirements...
Loan-to-value ratios Lenders also use a loan-to-value (LTV) ratio to determine how much risk they're willing to take on. In the mortgage world, the LTV compares the total loan amount with the market value of the home you're looking to buy or refinance. Let's say you saved up $80...
When choosing a mortgage lender, you may want to consider their interest rates, loan terms, reputation, product variety, preapproval process and closing costs.
Use this free online tool to determine your credit score now. Debt-to-income ratio: Mortgage lenders also look at your debt-to-income ratio, or DTI, which indicates how much of your monthly income your debts take up. The lower your DTI is, the larger the payment you can afford. Fannie...