Marco Santarelli

MARCH 6, 2025

At a 7% mortgage rate , your estimated monthly payment (principal and interest) would be around $5,322. Do you have a solid down payment, good credit, and comfortable debt-to-income ratio? Even a small drop in mortgage rates can make a significant difference in your monthly payments and overall affordability.

Mortgages

Redfin

JULY 23, 2025

In addition to repaying the principal amount of the loan, the monthly mortgage payment includes additional costs that can vary based on location and mortgage type. While principal and interest make up the bulk of your payment, additional expenses like property taxes and homeowners insurance will impact how much you actually pay each month.

Mortgages

Redfin

MARCH 5, 2025

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. The 28/36 rule is a common mortgage budgeting guideline.

Debt-to-income ratio

Marco Santarelli

MARCH 13, 2025

The Amortization Cycle When you first take out a mortgage, a substantial portion of your early payments go toward interest rather than paying down the principal. As time goes on, the balance shifts, and a larger portion of each payment goes toward reducing the principal.

Mortgages

The Mortgage Report

JULY 11, 2025

When it comes to finding the right loan to finance your dream home, take the time to research different loan products and better understand how they align with both your short and long-term objectives. Yet for those who are well-prepared, uncertainty can also create opportunity. The key lies in readiness and perspective.

FHA 203k rehab loan

Marco Santarelli

DECEMBER 11, 2024

Factors such as credit scores, debt-to-income ratios, and market trends will significantly impact individual mortgage experiences. 15-Year Fixed Mortgages Conversely, the 15-year fixed mortgage appeals to those looking to save on overall interest payments and repay their loan faster.

Mortgages

Redfin

JULY 30, 2025

Key takeaways: First-time homebuyer: Anyone who hasn’t owned a primary residence in the past three years Common first-time homebuyer qualifications: Credit score, debt-to-income ratio, down payment, income limits, employment history, purchase limits, homebuyer education Buying your first home?

Debt-to-income ratio

Marco Santarelli

DECEMBER 22, 2024

The monthly payment, including principal and interest, would be approximately $1,930. Debt-to-Income Ratio: Lenders prefer lower debt-to-income (DTI) ratios. This ratio compares your monthly debt payments to your gross monthly income.

Mortgages

Marco Santarelli

MARCH 4, 2025

So, when you're calculating that 30%, you need to factor in all of these elements, not just your principal and interest payment. And remember, this is gross income, meaning your income before taxes and other deductions. Credit Score and Debt: Lenders will scrutinize your credit score to assess your creditworthiness.

Mortgages

Marco Santarelli

MARCH 20, 2025

Debt-to-Income Ratio (DTI): Lenders assess your DTI to determine your ability to manage your debt obligations. A lower DTI , indicating that you have a comfortable amount of income relative to your debts, is viewed favorably and can help you qualify for a more attractive interest rate.

Mortgages

Redfin

JULY 14, 2025

A good rule of thumb is that your total monthly housing costs should not exceed 28% to 31% of your gross monthly income. Debt-to-income ratio (DTI) Your debt-to-income ratio (DTI) compares your monthly debt payments, including student loans, car payments, and more, to your gross monthly income.

Debt-to-income ratio

Marco Santarelli

MAY 5, 2025

Calculation Breakdown : Loan Amount: $300,000 Interest Rate: 6.70% Loan Term: 30 years Monthly Payment: Calculated using the formula for a fixed-rate mortgage payment, $$ P = frac{rPV}{1 – (1 + r)^{-n}} $$ where $$ r $$ is the monthly interest rate, $$ PV $$ is the principal amount, and $$ n $$ is the number of payments.

Debt-to-income ratio

Norada Real Estate

MAY 5, 2025

Calculation Breakdown : Loan Amount: $300,000 Interest Rate: 6.70% Loan Term: 30 years Monthly Payment: Calculated using the formula for a fixed-rate mortgage payment, $$ P = frac{rPV}{1 – (1 + r)^{-n}} $$ where $$ r $$ is the monthly interest rate, $$ PV $$ is the principal amount, and $$ n $$ is the number of payments.

Debt-to-income ratio

Marco Santarelli

MAY 20, 2025

Molly Boesel, Principal Economist at Cotality, perfectly sums it up: “Uncertainty tied to higher inflation has kept mortgage rates high, which has led to lower affordability of monthly mortgage payments, keeping some potential buyers out of the market.” However, several factors are keeping rates higher than desired.

Mortgages

Marco Santarelli

MAY 14, 2025

Always remember that the actual rate you secure will depend on your individual circumstances, including your: Credit score Income Down payment Debt-to-income ratio What Factors Influence Mortgage Rate Fluctuations? Property Taxes: $256.67 Homeowners Insurance: $128.00

Mortgages

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

Marco Santarelli

MARCH 30, 2025

Focus on Financial Health: Improving your credit score and lowering your debt-to-income ratio are key factors in securing a lower mortgage rate. By spreading the loan repayment over 360 months, the monthly burden on your finances is reduced, making homeownership more accessible for a wider range of people.

Mortgages

Redfin

JULY 30, 2025

A shorter mortgage term will result in a higher monthly payment since you’ll be paying off the principal balance faster. With a longer mortgage term, you’ll have a lower monthly payment because the principal is stretched over more years. Pre-qualification: An informal lender evaluation of your finances, estimating affordability.

Pre-approval

Redfin

JUNE 23, 2025

The income needed for a $400k mortgage comes down to a few factors, like your down payment, DTI, credit score, and even your location. Whether you’re house hunting for a condo in Boston, MA or a home in Phoenix, AZ, understanding how your finances impact affordability can help you plan wisely.

Debt-to-income ratio

Marco Santarelli

APRIL 5, 2025

Initially, a larger portion of this payment, approximately $1,625 , goes to interest, while only about $271 reduces the principal. Personal Financial Profile : Your individual credit score, debt-to-income ratio, and loan-to-value ratio will impact the rate you can secure. This process is known as amortization.

Mortgages

Marco Santarelli

JUNE 16, 2025

Remember that these are just averages , and the specific rate you'll qualify for will depend on factors like your credit score, down payment, and debt-to-income ratio. You put down 20%, meaning you need to finance $320,000. Analyzing Mortgage and Refinance Rates Now, let's talk about refinancing.

Mortgages

Marco Santarelli

MARCH 6, 2025

At a 7% mortgage rate , your estimated monthly payment (principal and interest) would be around $5,322. Do you have a solid down payment, good credit, and comfortable debt-to-income ratio? Even a small drop in mortgage rates can make a significant difference in your monthly payments and overall affordability.

Mortgages

Marco Santarelli

MAY 22, 2025

Lenders assess credit scores, debt-to-income ratios, and down payments when determining rates. If a borrower can settle outstanding debts or save for a larger down payment before applying for a mortgage, they are positioned to secure a more favorable interest rate. for principal and interest.

Mortgages

The Close

JULY 1, 2025

A home is the largest purchase most people will ever make, and many buyers rely on mortgage financing. This makes it possible for buyers who might not qualify for traditional loans to still secure financing. Income requirements When it comes to income, FHA lenders will generally allow a maximum of a 50% debt-to-income ratio (DTI).

FHA loan

Marco Santarelli

JANUARY 23, 2025

30-Year Fixed Mortgage Rates The 30-year fixed mortgage remains the most popular choice for home financing due to its stability. Monthly Payment Calculation: With the current average rate, for every $100,000 borrowed, the monthly principal and interest payment stands at approximately $668.66.

Mortgages

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. Small Loan Amounts: The rate might only apply to smaller-than-average loan amounts. What Makes Mortgage Rates Tick? Property Taxes $256.67 Homeowners Insurance $128.00

Mortgages

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. At a 6.59% interest rate over 30 years, your estimated monthly payment for principal and interest would be around $1,914.

Mortgages

Norada Real Estate

MAY 22, 2025

Lenders assess credit scores, debt-to-income ratios, and down payments when determining rates. If a borrower can settle outstanding debts or save for a larger down payment before applying for a mortgage, they are positioned to secure a more favorable interest rate. for principal and interest.

Mortgages

Redfin

MARCH 5, 2025

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. The 28/36 rule is a common mortgage budgeting guideline.

Debt-to-income ratio

Marco Santarelli

JUNE 11, 2025

They might require you to: Pay points upfront (effectively pre-paying interest) Have an exceptionally high credit score Qualify for a smaller-than-typical loan In reality, the rate you actually get will depend on your individual circumstances, including your credit score, income, debt-to-income ratio, and down payment.

Mortgages

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. month for 30 years Principal & Interest: $2,264.38 A lower DTI is preferable. Property Taxes: $256.67

Mortgages

Marco Santarelli

MARCH 25, 2025

Your individual rate will depend on a range of personalized factors, including your credit score, down payment amount, debt-to-income ratio, and the specific terms offered by your lender. Delving Deeper into Today's Mortgage Refinance Rates For homeowners contemplating a refinance, examining current refinance rates is paramount.

Mortgages

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

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. This includes principal, interest, property taxes, and homeowners insurance. The Bottom Line Mortgage rates are constantly changing, and what's true today might not be true tomorrow.

Mortgages

Marco Santarelli

JUNE 5, 2025

Remember, your actual mortgage rate will depend on your individual factors like: Credit score Income Debt-to-income ratio Down payment amount Factor in All the Costs: Playing With the Numbers Getting a low interest rate is great, but it's only one piece of the puzzle. Principal & Interest $2,264.38

Mortgages

The Close

MAY 6, 2025

Plus, its one of the only types of home improvement lenders that will finance a variety of property types, including secondary homes and investment properties. Given these, it has one of the best home renovation loans for homeowners and real estate investors wanting financing for large rehabs. Need financing for a fix and flip project?

Loans

Marco Santarelli

MAY 9, 2025

Personal Financial Profile : Your credit score, debt-to-income ratio, and the size of your down payment also influence your individual mortgage rate. Over time, as you pay down the loan, the interest portion decreases, and more of your payment goes toward the principal.

Mortgages