Debt-to-income ratio, taxes, and insurance: How your DTI is calculated

The Morgtage Report

DTI, your 'debt-to-income ratio,' includes taxes and insurance as part of your mortgage payment. Here's how to find your DTI with taxes and insurance. About Mortgages Buying a home

CFPB proposes a new category of qualified mortgages: Seasoned QM

Housing Wire

The Consumer Financial Protection Bureau is proposing a new category of qualified mortgages called Seasoned QM, which would require loans to meet certain performance requirements over a 36-month seasoning period.

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Mortgage industry provides commentary on CFPB’s proposed changes to QM loan definition

Housing Wire

Prior to the deadline for public commentary on Tuesday, housing industry trade groups, companies and organizations responded to the Consumer Financial Protection Bureau’s proposed rulemaking for the general qualified mortgage definition and the expiration of the QM patch in January 2021.

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The Do’s and Don’ts after Applying for a Mortgage

Keeping Current Matters

Once you’ve found the right home and applied for a mortgage, there are some key things to keep in mind before you close. Below is a list of things you shouldn’t do after applying for a mortgage. They’re all important to know – or simply just good reminders – for the process.

CMHC Finds Toronto and Vancouver Mortgage Debt Ratios Fall, But Not As It Seems

Better Dwelling

Canadian mortgage debt indicators are looking better, but the state-owned housing agency is putting a big asterisk beside them. Canada Mortgage and Housing Corporation (CMHC) data shows the mortgage debt to income ratio made a sharp drop in Q2 2020.

Ballard Spahr’s Andreano: CFPB is open to “other approaches” to QM

Housing Wire

and co-leader of the law firm’s mortgage practice group, to talk about regulatory proposals being considered by the Consumer Financial Protection Bureau. Q: What developments at the CFPB should the mortgage industry be watching?

Is the FHFA about to delay the refi fee?

Housing Wire

According to reporting by the Wall Street Journal on Saturday, the Federal Housing Finance Agency has been communicating with mortgage industry groups about delaying the implementation of a fee which would add a 0.5% The post Is the FHFA about to delay the refi fee?

Make Sure You’ll Have Mortgage Reserves Left After Closing

RIS Media

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. Mortgage reserves are expressed in terms of the number of months you can cover all those costs. . Why Might Mortgage Reserves Be Required?

Think these credit problems are stopping you from buying a house? Think again

Housing Wire

Your credit plays a huge part in your ability to get a mortgage. Still, it’s not the end-all, be-all—and many borrowers believe they need picture-perfect credit to buy a home. Myth 2: You can’t buy a house if you have lots of student loan debt.

Mortgage rates fall again but credit availability gets tighter

Realty Biz

Mortgage rates are at an all-time low, but that’s just too bad for the thousands of potential home buyers who’re missing out on the action due to tighter lending standards. According to Bloomberg News , housing credit availability has reached its lowest level since February 2014.

Buying a home? Boost your FICO score first

Housing Wire

If you’re thinking about buying a home, then boosting your FICO score should be at the top of your to-do list. Thanks to the pandemic, the three main credit bureaus — TransUnion, Equifax and Experian — are all offering free weekly credit reports until April 2021. Avoid new debt.

Self-Employed and Applying for a Mortgage? Here’s What’s Changed Since COVID-19

Realtor.com

valentinrussanov/Getty Images The gig economy has blown up in the past few years, with more and more people choosing to work as freelancers, either by starting their own businesses, or by picking up nonsalaried jobs from bigger companies. Getting a mortgage as a freelancer (pre-coronavirus).

Making Fannie Mae and Freddie Mac a single utility

Housing Wire

The clock has effectively run out for FHFA Director Calabria to release Fannie Mae and Freddie Mac from their 12-year captivity under conservatorship following the great financial crisis. The next stage in their evolution is within reach to ensure that legacy while protecting taxpayers.

The CFPB missed a chance to fix the QM rule

Housing Wire

The Consumer Financial Protection Bureau appears to have lost an opportunity to correct a nagging issue in its definition of a qualified mortgage. At the heart of the issue is a borrower’s ability to repay their mortgage.

MBA asks CFPB to extend GSE patch

Housing Wire

The Mortgage Bankers Association sent a letter on Monday to the Consumer Financial Protection Bureau asking for a six-month extension to the so-called “GSE patch” that allows Fannie Mae and Freddie Mac home loans to borrowers with high debt levels to be considered Qualified Mortgages.

Forbearance Numbers Are Lower than Expected

Keeping Current Matters

Originally, some housing industry analysts were concerned that the mortgage forbearance program (which allows families to delay payments to a later date) could lead to an increase in foreclosures when forbearances end.

Cash Deposits When Buying a Home: What to Know

Point2Homes

Cash offers have traditionally been a great way to get a discount or encourage a reluctant seller. However, when it comes to mortgages, cash can suddenly lose its appeal. Nowadays, lenders want to know exactly where all your funds are coming from.

7 Questions to Ask Yourself Before Refinancing Your Mortgage

Point2Homes

Many homeowners are talking about refinancing their mortgages at the moment. But, before you jump into refinancing your mortgage, it’s important to know what it involves and what the potential consequences are. Do you have any plans to relocate? US Real Estate Mortgage

Non-QM lenders are back. But will brokers pick up the phone?

Housing Wire

Mark Dodson was having a promising start to the year. His corner of the Atlanta mortgage market – high-value home loans that wouldn’t be bought by the GSEs – was booming. But by March there were whispers that the non-QM space was going to vanish soon.

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Should You Choose a National Mortgage Lender or a Local Bank or Credit Union?

RIS Media

If you’re looking to buy a house, there are a wide range of companies that would likely be happy to give you a mortgage. They are often less strict than banks when it comes to loan approval requirements and down payments.

Are You Ready to Buy a Home?

Realty Biz

Depending on the market where you live, your mortgage may be lower than rent. Having a low debt to income ratio and a solid credit score allows you to qualify for a mortgage with the best possible interest rate. The post Are You Ready to Buy a Home?

Before Making Loans, Some Mortgage Lenders Ask, Do You Really Plan to Pay This?

Realtor.com

Andrei Stanescu / iStock Some mortgage lenders are asking customers taking out a mortgage to confirm they don’t intend to seek forbearance, a move meant to keep losses low during a pandemic that has put millions of Americans on shaky financial footing.

Tips for Obtaining a Mortgage During Retirement – You Need a Strategy

Realty Biz

You’ve never had trouble qualifying for a mortgage because your credit rating was high, your debt-to-income ratio was good, and you bought a house that you could afford. Now you’re fully retired and want to sell the old family home that still has a mortgage.

7 Easy Steps to Take Advantage of Low Rates and Refinance Your Mortgage

Point2Homes

Interest rates are currently at a historic low, making it extremely tempting to reconsider your current mortgage. Indeed, you may be thinking about refinancing your mortgage in order to make the most of low rates. US Real Estate Mortgage

Tips for Buying a Foreclosure Property

Point2Homes

If your ability to afford the mortgage payments on the home you want to buy is causing you concern, buying a foreclosure home may make a lot of sense. This is because the lender wants to release their money from the property as soon as possible.

What Can Be Done With Student Loans to Help Homebuyers?

Realty Biz

A study by American Student Assistance found that 55% of student loan holders said their debt is causing them to put off homeownership. It’s About Your Debt-to-Income Ratio. There are positive steps you can take to improve how lenders view both.

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Our Home Buyer Wasn’t Approved for a Loan—What Now?

Realtor.com

Although this is a major milestone on the march toward closing, there are many points where this deal can go off the rails—like if you find out your home buyer wasn’t approved for a mortgage. Why home buyers aren’t always approved for a mortgage.

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Consumer Financial Protection Bureau Issues Analysis of HMDA Data Points

RIS Media

The Consumer Financial Protection Bureau (CFPB) issued a new Home Mortgage Disclosure Act (HMDA) analysis of the 2019 HMDA Data. The Home Mortgage Disclosure Act (HMDA) is a data collection, reporting and disclosure statute that was enacted in 1975.

11 Big Factors That Affect Your Mortgage Rate: What Buyers Need to Know

HomeLight

If you’re buying a home, you probably already know you want to get the lowest mortgage rate possible. And you’ve also likely heard that mortgage rates are super low (and have been for years!) What, exactly, is a mortgage rate? Mortgage rates are relatively complex.

What’s A Mortgage Down Payment … And Why Does It Matter?

HomeLight

If you’re thinking about buying a house one day, then you may have heard that coming up with a mortgage down payment is a big obstacle, possibly even the biggest. The rest of the money to buy the house comes from the lender in the form of a mortgage loan. The LTV ratio is 88%.

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What is a Credit Score? Credit Scoring Ranges Explained

Point2Homes

Credit bureaus gather information on you and use a formula to create your credit score , which can range from 300 to 850. Lenders and other businesses use this credit score to assess you because it shows them how likely you are to repay the money you borrowed.

5 Things to Prepare for When Switching Mortgage Lenders Before Closing

HomeLight

It checks all your boxes for must-haves, from location to square footage to price point. You’ve done your homework as a homebuyer, going through the preapproval process , getting your down payment together, and picking out your mortgage lender. You may need to pay the seller.

Reducing the racial wealth gap by expanding down payment assistance

Housing Wire

The incoming Biden administration has made improving racial equity a pillar of its domestic policy agenda, and appropriately so. Extending sustainable homeownership opportunities to more people of color would not only improve racial equity, it would also be good for economic growth.

Tips for Saving for Your First House

RIS Media

Saving for your home may feel like a big undertaking, but there are a few tricks you can use to make it easier. Check with a financial planner to help you make the most of your budget long-term. Address Your Debt. Address your debt selectively.

Am I A First-Time Homebuyer? Who’s Qualified … And Who Isn’t

HomeLight

If you don’t know how to qualify as a first-time home buyer, then the first thing you should know is: Being a first-time homebuyer includes some exclusive perks that make it easier to purchase a home. From how much you need for down payments to credit scores , let’s break it down.