Bellwether's Blog on life and money
There is a lot of misconception out there when it comes to qualifying for a mortgage loan. For instance, the notion that from the lender’s perspective, loan eligibility is based only on a formula.
Although mortgage underwriters look at a variety of different information when determining loan qualifications, it ultimately comes down to four things: credit, equity, income and assets.Read More
Debt-to-Income (DTI) ratio is a personal finance measure that helps in identifying an individual’s debt payment in comparison to their overall income. It is a way through which a lender can determine your ability to repay the money that you have borrowed.
It is important that you do not confuse DTI with your credit card utilization, which is the amount of debt that you have accumulated in relation to your credit limits. Several lenders, especially mortgage or auto loan lenders, make use of your debt-to-income to determine your ability to pay them off responsibly. For example, a mortgage lender will use your DTI ratio to figure out how much of the mortgage you can afford to pay after all other monthly debts are paid off.Read More
When purchasing property or refinancing a home, a borrower should consider the various types of mortgages available to fit within their needs and their budget.
Listed below are a few different types of mortgages that are available to help you find the best type of loan to best suit your needs.Read More
Many people carry revolving debt with their credit cards. Reducing debt can help one’s chances to be considered eligible for loans.
The drawbacks associated with credit card debt require taking this issue seriously and adopting effective measures to pay off debt. Here are a few strategies to significantly reduce and even eliminate credit card debt.Read More
A mortgage point is the amount equal to 1% of the mortgage loan amount. For example, let’s say that you take out a loan of $400,000, one point will be $4,000.
There are two kinds of mortgage points:
- Discount Points
- Origination Points