What’s a good debt-to-income ratio for a mortgage? What lenders want to see

The Mortgage Report

What's a good debt-to-income ratio for a mortgage? Most lenders want to see 43% or lower. About Mortgages Mortgage StrategyBut a higher DTI can be ok, too. Here's what you should know.

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

The Mortgage 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

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Tired of renting? 6 signs you’re ready to buy your first home

Housing Wire

At least, more complicated than simply paying rent to a landlord every month. Not to mention, expensive. In fact, depending on where you live, your monthly rent could be more expensive than your monthly mortgage. Are you finally ready to put down some roots?

Should You Focus on Saving for a Down Payment or Lowering Your Debt-to-Income Ratio?

RIS Media

When you apply for a mortgage, the lender will look at your income and debt, as well as the amount of money you can put down. When to Prioritize Debt. A lender will limit the percentage of your total income that can go toward debt payments.

How much should my mortgage be compared to my income?

The Mortgage Report

How much should your mortgage be? It's all about how large of a monthly mortgage payment you can comfortably afford. Learn how to find the answer. How much should my mortgage be compared to my income? How much should my mortgage be

How much should my mortgage be compared to my income?

The Mortgage Report

How much should your mortgage be? It's all about how large of a monthly mortgage payment you can comfortably afford. Learn how to find the answer. How much should my mortgage be compared to my income? How much should my mortgage be

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.

Loans 360

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.

Understanding the seasonal patterns of mortgage rates

Housing Wire

Much like the changing of the calendar, buying and selling homes follows a seasonality that that those in mortgage and real estate have grown accustomed to. So, what do lenders have to do to be competitive? But at first, mortgage rates didn’t drop.

Black mortgage applicants far more likely to be rejected

Housing Wire

Black homebuyers’ mortgage applications are 2.5 times as likely to be rejected as the submissions of white home shoppers. That compares to 6% Hispanic applicants, 4 % white and 4% Asian applicants.

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?

Stepping up the fight against fraud in mortgage lending

Housing Wire

Wherever there is commerce, there will be fraud, and the mortgage industry is no exception. The transition to a largely remote workforce during the COVID-19 pandemic only gave criminals more of an incentive to attempt to deceive lenders or misrepresent qualifications.

Student loan debt delays homebuying timeline

Housing Wire

Over half of non-homeowning millennials (60%) say student loan debt is delaying them from purchasing a home, making them the population most affected by student debt , according to the National Association of Realtors’ 2021 impact of student loan debt report.

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Should You Buy a New Car if You’re Also Thinking About Buying a New Home? You May Want to Wait

Lighter Side of Real Estate

But will buying the former impact your ability to buy the latter? A recent article from realtor.com outlined the ways taking out a car loan could impact your ability to get a mortgage (and to get the best rate on that mortgage), including: Changing your credit score.

Here’s the salary you need to buy a home in five of the largest U.S. cities

Housing Wire

One being, how much do you need to earn in a year to afford a mortgage in the U.S.? . Since home prices vary state-by-state, the salary you need to qualify for a mortgage in the U.S. and how much a potential homeowner would need to earn to live comfortably.

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.

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?

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.

Should I pay off student loans before buying my first home?

Housing Wire

Do I need to pay off my student loans before buying my first home? It’s a common question, but unfortunately, not an easy one to answer. Are you still scratching your head wondering what to do? Here’s what to expect in the mortgage application process.

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CFPB delays QM compliance date to October 2022

Housing Wire

The Consumer Financial Protection Bureau released a notice of proposed rulemaking on Tuesday to delay the mandatory compliance date of the Qualified Mortgage final rule from July 1, 2021 to October 1, 2022. “At

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.

4 Reasons You May Have Been Denied Refinance

RIS Media

If you are looking to lower the interest rates on your monthly mortgage payments, refinancing may be the answer. But, according to a recent study by Lending Tree, even though most mortgage refinances were approved at the start of 2021, many were denied.

Applying For a Mortgage? Avoid These Common Mistakes

Lighter Side of Real Estate

There are a number of common mistakes potential home buyers make when applying for a mortgage—and those mistakes can end up costing you time, money, and frustration during the home buying process. You wouldn’t work with an out-of-area real estate agent to buy your home.

How Being an Authorized User on Someone Else’s Credit Card Could Affect Your Mortgage Application

RIS Media

If you’re an authorized user, you’ll be able to use the other person’s credit line, and though the credit card will show up on your credit report, you won’t be responsible for making payments. When applying for a mortgage, however, being an authorized user may not help you.

CFPB delay of QM rule implementation is a terrible move

Housing Wire

As reported yesterday, The Consumer Financial Protection Bureau released a notice of proposed rule-making that would “delay the mandatory compliance date of the general qualified mortgage rule 15 months to Oct. To contact the author of this story: Dave Stevens at dave@davidhstevens.com.

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.

Why federal CRA requirement on IMBs is not necessary

Housing Wire

Federal Reserve Chairman Jerome Powell recently announced his support to extend the Community Reinvestment Act (CRA) to nonbanks. Therefore, the mortgage questions federal policymakers should be asking are: 1) Why do IMBs have a much better mortgage access to credit record than banks?

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Is there racial bias baked into GSE underwriting?

Housing Wire

The story, “The secret bias hidden in mortgage-approval algorithms,” included statements from fair housing activists who concluded that there is “systemic racism” in the mortgage process. Empowering Lenders to Increase Homeownership with Opportunity Data.

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 seeks clarity on GSE investment property policies

Housing Wire

The MBA said several of the revised PSPA amendments could cause “unnecessary disruptions in the housing finance system,” and asked for a meeting to cover these topics. Reports that the GSEs are requiring some lenders to adjust loan deliveries as early as April. Fed Policy Mortgage

Benefits of Private Mortgage Lenders

Realty Biz

When most homeowners seek a mortgage, they go to a bank, credit union, or other financial institution, but sometimes, these lenders won’t lend them money for a variety of reasons. Easier to Qualify. A private lender can be more lenient with proof of income. 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.

Should You Submit an Application to a Different Lender if Your Mortgage Preapproval Was Denied?

RIS Media

Before you start looking for a new home, you should get preapproved for a mortgage. This will help you figure out how much you can afford to spend and show a seller that you’re a serious and qualified buyer. Common Reasons for Denial and How to Address Them.

Attention all first-time homebuyers: Here are some steps to affording a home

Housing Wire

In this market where homes are selling like hot potatoes, it might seem like everyone can afford to buy a house, but that’s not true. It takes time, money, energy, planning, money and more money to become a first-time homebuyer. So, what are you supposed to do?