Marco Santarelli

JUNE 11, 2025

Here's a breakdown of the key influences: Lender Presence: Not every bank or mortgage company operates in every state. How to Shop Around for the Best Mortgage Rate Check with local banks and credit unions: They sometimes have better deals than larger, national lenders. month Breakdown: Principal & Interest: $2,264.38

Mortgages 52

Mortgages Debt-to-income ratio Principal Loans 52

Marco Santarelli

MARCH 17, 2025

Let's look at an example provided by Zillow: For a $300,000 mortgage at 6.59% with a 30-year term, your monthly payment for principal and interest alone would be around $1,914. ” The Federal Reserve is the central bank of the United States, and one of its main jobs is to manage inflation.

Mortgages 72

Mortgages Fixed-rate mortgage Principal Loans 72

Marco Santarelli

MARCH 6, 2025

The central bank even started to hint at potential rate cuts. At a 7% mortgage rate , your estimated monthly payment (principal and interest) would be around $5,322. Many buyers today are also banking on the idea of refinancing down the road. Do you have a solid down payment, good credit, and comfortable debt-to-income ratio?

Mortgages 97

Mortgages Debt-to-income ratio Banks Principal 97

Marco Santarelli

MARCH 20, 2025

The Federal Reserve's Influence: The Federal Reserve (also known as “The Fed”), the central bank of the United States, has a powerful influence on mortgage rates through its monetary policy decisions. Debt-to-Income Ratio (DTI): Lenders assess your DTI to determine your ability to manage your debt obligations.

Mortgages 52

Mortgages Debt-to-income ratio Principal VA loan 52

Marco Santarelli

FEBRUARY 26, 2025

That's just principal and interest; it doesnt include property taxes, homeowners insurance, or potentially private mortgage insurance (PMI) if you don't have a 20% down payment. Pay down debt to improve your debt-to-income ratio. Lenders love to see low debt compared to your income. A: Great question!

Mortgages 93

Mortgages VA loan Debt-to-income ratio Fixed-rate mortgage 93

HomeLight

JULY 7, 2022

So, ideally, if we round that 28%-to-36% rule to one-third of your take-home income, you wouldn’t be spending more than $1,509 on your housing payment — don’t forget, that should include your principal and interest payment, taxes and insurance, any HOA fees, plus PMI or mortgage insurance if you have it. Safety-net (months): 5.4.

Debt-to-income ratio 122

Debt-to-income ratio Closing costs FHA loan Loans 122

HomeLight

JUNE 22, 2023

Debt-to-income ratio After looking at how much money is flowing into your household, you’ll want to write down your monthly debts. That’s because lenders will also look at your debt-to-income ratio, or DTI. That number will be your debt-to-income ratio.

Debt-to-income ratio 98

Debt-to-income ratio Mortgages FHA loan Loans 98

Marco Santarelli

MARCH 6, 2025

Principal and Interest (P&I): The portion of your monthly payment that goes towards paying down the actual loan amount (principal) and the cost of borrowing the money (interest). LTV (Loan-to-Value Ratio): This compares the amount of the loan to the appraised value of the home. A lower DTI is better.

Mortgages 64

Mortgages Debt-to-income ratio Loans Principal 64

Marco Santarelli

JUNE 9, 2025

Income: Lenders want to see that you have a stable income to repay the loan. Debt-to-Income Ratio (DTI): This is the amount of your monthly income that goes toward paying debts. But in September, the central bank announced a first rate cut of 0.50 A lower DTI is preferable.

Mortgages 52

Mortgages Debt-to-income ratio Loans Banks 52

RIS Media

NOVEMBER 2, 2020

You may think that cleaning out your bank account to make a large down payment on a house would be a smart move, but that’s inaccurate. You should have money left over in mortgage reserves so you’ll be able to pay your loan principal, interest, taxes and insurance if you experience a loss of income.

Debt-to-income ratio 64

Debt-to-income ratio Closing Mortgages Loans 64

Marco Santarelli

MAY 2, 2025

Remember, the rate you ultimately get will depend on your individual credit score, income, debt-to-income ratio, and other factors. Get quotes from multiple lenders banks, credit unions, and online lenders. Small Loan Amounts: The rate might only apply to smaller-than-average loan amounts. Property Taxes $256.67

Mortgages 64

Mortgages Debt-to-income ratio Loans FHA loan 64

Redfin

MARCH 5, 2025

Below are some of the best ways to find an affordable home without breaking the bank. Review your savings for your down payment , monthly income, and potential loan options to set a realistic price range. Maintaining a low debt-to-income ratio and a strong credit score can also enhance your eligibility for favorable mortgage terms.

Debt-to-income ratio 43

Debt-to-income ratio Backup offer Finance Pre-approval 43

Redfin

JUNE 13, 2025

That increase significantly shrinks your buying power, even if your income or equity has improved since your first home. rate, financing a $400,000 home with a typical 20% down payment, your monthly principal and interest would run about $2,050—compared to roughly $1,435 at a 4% rate (all else being equal). Example cost impact: At a 6.8%

Debt-to-income ratio 35

Debt-to-income ratio FHA loan Equity Loans 35

Marco Santarelli

MAY 6, 2025

The actual rate you get will depend on your individual circumstances, including your credit score, down payment, and debt-to-income ratio. However, the central bank opted to hold rates steady for its first meeting of the new year, and it's possible they may not make another rate cut for months.

Mortgages 52

Mortgages Debt-to-income ratio Fixed-rate mortgage Loans 52

Redfin

SEPTEMBER 4, 2024

Personal factors include the loan terms, credit score, debt-to-income ratio, and employment history. Refinancing cost breakdown The cost of refinancing a mortgage can differ greatly as certain fees like the origination fee and closing costs depend on the loan principal while others can depend on aspects like location.

Mortgages 69

Mortgages Debt-to-income ratio Closing costs Principal 69

Windemere Buying

DECEMBER 14, 2020

Stabilize Your Debt to Increase Buying Power When assessing what you can afford, banks will examine your debt-to-income ratio. Lenders want to know that you’ll be able to pay your mortgage on top of your remaining debt. The higher the ratio, the higher risk of default.

Debt-to-income ratio 52

Debt-to-income ratio Principal Loans Mortgages 52

Redfin

MARCH 5, 2025

Below are some of the best ways to find an affordable home without breaking the bank. Review your savings for your down payment , monthly income, and potential loan options to set a realistic price range. Maintaining a low debt-to-income ratio and a strong credit score can also enhance your eligibility for favorable mortgage terms.

Debt-to-income ratio 38

Debt-to-income ratio Backup offer Finance Pre-approval 38

Marco Santarelli

JUNE 4, 2025

State-Level Regulations: Banking regulations can differ from state to state, impacting how lenders operate and the rates they offer. Remember, your credit score, income, debt-to-income ratio, and the size of your down payment all play a role. It's not just the principal and interest that you need to consider.

Mortgages 59

Mortgages Debt-to-income ratio Principal Loans 59

Redfin

FEBRUARY 10, 2021

Well, it’s not only the difference between getting a low-interest rate on a home loan versus a high one, but it will also directly impact how much a bank or lender will loan you. Money that is not going against the principal of your mortgage. Banks like to see a healthy savings account and other investments or assets (i.e.

Debt-to-income ratio 76

Debt-to-income ratio Pre-approval Inspection Purchase and sale agreement 76

Realty Biz

MARCH 7, 2023

Then, you may have realized that your credit history and low income might not make you eligible for a traditional loan or bank mortgage. In that case, low-income housing programs will come to your rescue! How do lenders determine your income and eligibility for a loan? This isn’t a rule set in stone, and exceptions occur.

Loans 74

Loans Debt-to-income ratio Closing costs Lending 74

Redfin

SEPTEMBER 27, 2021

Many lenders work with standard debt-to-income ratio calculations which don’t take into account other costs of home ownership. Determine your debt to income ratio (DTI). If your spouse, partner, or roommate is a party on the mortgage loan , their gross income and recurring debts also play a factor.

Debt-to-income ratio 71

Debt-to-income ratio Closing costs Loans Title 71

HomeLight

OCTOBER 15, 2020

To get one, you’d go to an approved lender, and the government in turn guarantees it for the bank from which you borrowed. If a candidate has any unusual income factors, such as commission or court orders, they may need a mortgage professional to work with the lender to document the income in more detail.”.

Loans 85

Loans Purchase and sale agreement Loan Officer Debt-to-income ratio 85

HomeLight

AUGUST 28, 2020

This $250,000 is called the loan principal. It’s a percentage you pay on top of the loan principal. So, let’s say you’ll pay 5% interest on top of the $250,000 principal. When you make your mortgage payment each month, your principal and interest are rolled into one mortgage payment. Your debt-to-income ratio.

Mortgages 104

Mortgages Loans Fixed-rate mortgage Principal 104

The Close

MAY 6, 2025

Aven: Most flexible access to home equity Pros 15-minute application process No annual fees or prepayment penalties 2% cashback rewards Cons Must have equity in your home Minimum FICO score of 620 Rates depend on your income, debt, and credit score 2.5% Typically offered by private, non-bank lenders who can give you funding upfront.

Loans 45

Loans Renovation Equity Finance 45

HomeLight

MAY 31, 2021

One of the first things you’ll want to know is just how much house you can afford , which is based on your income, credit score, debt-to-income ratio (DTI), and savings amount (including your down payment). I had some clients a few years ago that had trouble qualifying because they had a lot of debt. Conventional.

Mortgages 85

Mortgages Debt-to-income ratio Loans Closing costs 85

Marco Santarelli

AUGUST 21, 2024

Monthly payment on a $300,000 mortgage at 6.10% is approximately $1,818 towards principal and interest. Financial Stability : Maintaining a lower debt-to-income ratio can make you a more attractive candidate for lenders. This means managing existing debts effectively before taking on a mortgage.

Mortgages 52

Mortgages Debt-to-income ratio VA loan Loans 52

Redfin

JULY 11, 2023

You then make monthly payments, including principal and interest, over an agreed-upon term (usually 15 to 30 years) until the loan is fully repaid. These may include proof of income, bank statements, employment verification, credit history, and debt information. How does a mortgage work?

Pre-approval 59

Pre-approval Mortgages Pre-qualification Debt-to-income ratio 59

HomeLight

JUNE 30, 2022

You also want to check your FICO score, as this is what the majority of lenders use ; you can often get your FICO score for free if your banking institution provides it, but otherwise you might have to pay for this service. Bank statements. Usually, the quicker you can get your lender what they need, the quicker you can close!

Purchase and sale agreement 96

Purchase and sale agreement Inspection Earnest money deposit Closing costs 96

Marco Santarelli

MAY 29, 2025

Your Financial Profile: Your credit score, income, debt-to-income ratio, and the size of your down payment all play a significant role in determining your mortgage rate. This includes principal, interest, property taxes, and homeowners insurance. Your estimated monthly payment would be around $2,649.04.

Mortgages 52

Mortgages Debt-to-income ratio Pre-approval Fixed-rate mortgage 52

Marco Santarelli

MAY 16, 2025

Your income: Lenders want to see that you can comfortably afford your mortgage payments. Your debt-to-income ratio: This compares your monthly debt payments to your gross monthly income. Principal & Interest: $2,264.38 That benchmark rate went up by 5.25 percentage points. Property Taxes: $256.67

Mortgages 52

Mortgages Debt-to-income ratio Fixed-rate mortgage Loans 52

HomeLight

DECEMBER 30, 2021

Give your piggy bank a shake, and let’s get started! The advantages of putting more money down include a smaller loan principal , a potentially lower interest rate , and a better chance of avoiding mortgage insurance (MI). Grab a highlighter and take a look at your bank and credit card statements from the last three months.

VA loan 98

VA loan FHA loan Loans Closing costs 98

Redfin

AUGUST 3, 2022

Here are the steps to determine how much house you can afford: First, determine your debt to income ratio (DTI). This is your monthly expenses versus your cash intake or the bills you pay divided by your gross monthly income. Debts include recurring bills, such as car payments, daycare payments, and student loans.

Pre-approval 76

Pre-approval Purchase and sale agreement Title Debt-to-income ratio 76

HomeLight

NOVEMBER 29, 2021

First-time homebuyers can apply for a forgivable loan of up to $15,000 to assist with closing costs and down payment or principal reduction. You must secure a mortgage through one of the program’s member banks and have an income that does not exceed 115% of the HUD median income requirements. Matched savings grants.

Land 110

Land Closing costs Purchase and sale agreement Loans 110

Redfin

AUGUST 29, 2024

Debt-to-income ratio (DTI) Another major factor that a lender will consider when approving your mortgage loan is your debt-to-income ratio (DTI). DTI is calculated by dividing total monthly debts by gross monthly income. The number is then multiplied by 100 to get the final percentage.

Earnest money deposit 63

Earnest money deposit Purchase and sale agreement Pre-approval Debt-to-income ratio 63

HomeLight

JANUARY 27, 2021

A lender with a local presence will likely know the ins and outs of your market better than a big bank, and they’ll have local relationships that will make closing your deal easier. Your mortgage payment is more than just the cost of the principal and interest on your loan. This can spell trouble. to 1% of the loan amount annually.

Closing costs 119

Closing costs Inspection Loans Earnest money deposit 119

Housing Wire

DECEMBER 15, 2022

Fannie had outstanding loan-repurchase requests to mortgage lenders totaling $939 million based on unpaid principal balance (UPB) as of Sept. Sean Stephens, who is of counsel in the mortgage-banking practice group at law firm of Johnston Thomas. And it just might push some smaller lenders over the cliff. Paying in full.

Loans 370

Loans Debt-to-income ratio Purchase and sale agreement Banks 370

HomeLight

MARCH 28, 2022

The less you owe on the principal loan, the smaller your monthly mortgage payment. What’s your income, debt, and credit score? Your debt-to-income ratio (DTI) is the amount of monthly debt you’re carrying relative to your income.

VA loan 104

VA loan Loans Debt-to-income ratio Closing costs 104