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TODAY’S MORTGAGE RATES

Mortgage Rates stayed the same to
slightly better over the past 7 days
With the Mortgage Backed Security
(MBS) market trading up + 9 bps.

Here is your Average Mortgage Rates
across the country according to
Mortgage News Daily.

Most of the big economic reports that
normally would impact mortgage rates
are not being released with the Gov’t
shutdown going into it’s 7^th day.

It appears mortgage interest rates will
likely remain static in the short term
without any major economic news
to move the markets.

There are a lot of characteristics that
go into a mortgage rate – credit score,
investor, loan to value, loan amount,
costs, etc. Please call me to go over
your specific scenario so we can
price your loan out accurately.

HOW MUCH HOUSE CAN I AFFORD?

One of the most common questions for
home buyers and homeowners looking
to refinance in America is:

“How Much House Can I Afford”

Every person has a different budget
that they feel comfortable with but
here is how Mortgage Professionals
weigh what you qualify for.

1. We look at your total gross income
before taxes are taken out.
For example, if you and a spouse
make $50,000 per year, and $75,000
per year, your total gross
income would be:

$50,000 + $75,000 = $125,000 / 12 =
$10,416.67 per month.

2. Next we look at the total
bills on your credit report. 
Your qualification doesn’t include
expenses like food, health care,
entertainment, etc. We are typically
just looking at items on your credit
report but we may have to add
expenses like child support, alimony,
or payback on a Federal Tax you owe.

The most common items on your credit
report would be – home loans, vehicle
loans, credit cards, and student loans.

For example – if you are looking
to purchase a home and you have:

$500 auto loan
$25 minimum credit card payment
$50 minimum credit card payment
$100 student loan payment

Your total non-housing expenses on
your credit report would be $675.

3. Typically, your gross income has to
be about double what your monthly
expenses are.
So let’s take the example family above.

Their monthly gross income is: $10,416.67.
Their current monthly expenses on their
credit report are: $675.

Half of their gross income is $5,208.33.
Currently their non housing expenses
are $675.

They would likely qualify for a home.
loan where the total housing payment is:

$5,208.33 – $675 = $4,533.

If you add up their monthly expenses
and the new housing payment together –
they equal about half of their monthly
gross income.

4. What would the customer
above likely qualify for?
Assuming the customer qualified for a
6.25% rate, this client would likely
qualify for a mortgage of about
$671,000.

Their total monthly payment on a
$671,000 loan would be $4,131.46.
We also have to take into account
property taxes, homeowner’s insurance
and possible HOA dues and PMI.

Assuming those are $400 – this client’s
total payment would be $4,531.46.

5. Don’t worry if this is confusing,
we do the math for you.
If the above math is confusing, don’t worry.
We do all the math for you and tell you
the range of purchase price you will
qualify for based on your income,
credit, and down payment.

A good item to know is that you
typically have to make about double
what your total monthly expenses are
on your credit report including your
new mortgage payment.

Hope you have a fantastic week!!