What kind of loan could I qualify for?

Question

Together my husband and I make $240,000/year. He's got excellent credit, I have above-average credit. What kind of loan do you think we could get approved for? What would that make our montly payments? Ballparks are obviously fine. Thank you.

Home loan. Sorry - should've clarified.

Thank you everyone!! So many "best" answers!

Answer 1

$240,000 / year = $20,000 / month.
In general, banks want your house note to be no more than 1/3 of your gross income, but 1/4 is probably safer.

If you want to avoid paying PMI (private mortgage insurance), then you need a down payment of 20% of the buying price.

If you want your payments to be 1/4 of your income:
$751,538 @ 30 years @ 7% = $5,000.00 / month
$573,981 @ 15 years @ 6.5% = $5,000.00 / month

Or, for a bigger mortgage, where the payments are 1/3 of your income:
$1,000,000 @ 30 years @ 7% = $6653.02 / month (Plus $250,000 down)
$750,000 @ 15 years @ 6.5% = $6533.01 / month.

Of course, you could move to a red state where $250,000 down would just about buy you the whole house.

And ignore the comments like "good lord that's a lot of money".
They're the kind of people who would love to vote to raise your taxes.

Answer 2

Lot's of information for you to read, think over and digest. And the payments are just as varied. SO - hope this will not confuse you.

First: Decide on how much you want to spend, if you want to escrow the taxes and insurance. Escrow means if you want the taxes and insurance included in your payment. You don't have to include them, but some people like knowing it is paid, instead of getting a high Tax bill in May & Nov, and the Insurance bill annually. Say the taxes are 5000.00 a YR and insurance 1800 a year (just an estimate, ok) That is 6800.00 a year divided by 12 = 566.66 This 566.66 would be included added onto your P/I (Principle & Interest) payment.

Now you make 240,000 combined. Divide this by 12 = 20,000 a month. How much other debit do you have? Add up autos, credit cards, etc - Say you have debit of 1,200 (2 auto's, 4 credit cards) $20,000 - 1,200 = Leaves you 18,800 a month - 566.66 (Taxes & Ins) listed above. = 18,233.34 @45 percent (Lenders like your DTI (debit-to-income ratio to be this) (you can go up as high as 55 DTI) but using the 45 percent here. That leaves you a payment of 8,205.00 You could both be on the loan, or just your husband on the loan, and you put your name on afterwards with a "quick claim deed" from your local court house, cost about 25,00 to file it.

What can you afford: Rates based on 30 yr/fix

500,000 @ 6.5% = 3160.34 hubby credit
500,000@ 7.0% = 3326.51 your credit

750,000 @ 7% = 4989.77 jumbo rate-hubby cr
750,000 @ 7.5 = 5244.11 jumbo rate-your cr.

1,000,000 @ 7.5 = 6992.15 jumbo rate using your combined income.

You could afford higher, but need to think, if something happened to one of you, could the other one afford the home. If you did not have a life insurance policy to pay for the home.

Would you rather just qualify off 1 income - just in case something happened to one or the other of you. Just a thought. If that is the case, use 120,000 as income divide by 12 = 10,000 -566.66 (taxes & ins) = 9433.33 - other debit -1,200 =8233.34 x 45 percent = $3705.00 you could go up to 50 percent DTI for 4,116.67.

There are other payment options: If you think you will only be in the home 3-7 years, go with a interest only - it lowers your payment - you are paying on the interest of your home, but nothing is being paid on the principle mortgage.

Or - pick - a - payment program: Option - you choose from 4 paymetns, one of the options is a interst only. Just be carefull you do not do a neg amortization....

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

With a broker, he/she can rate shop for you, and get you the best rate, program available. He/She will be in daily contact with you, letting you know the whole loan process.

By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

The bottom line is what do you both feel confortable with paying?

Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information. I have many programs available, and lenders to choose from - to help you get the best rate available. From USDA Rural, Government loans, Conforming, Sup-Prime, Investment, Commercial just to name a few.

Answer 3

Really not enough info to give you a good answer, but here are some things that might help. You don't want go go over 21% of your monthly income for principle and interest payment and that would be about $4200. 00 a month. With your income thats is about a 625K mortgage and that going to put in a jumbo loan with about 7.500 % par rate. As long as your credit is above a 660 middle score and you can prove your income, it should be pretty easy to do!

Answer 4

$240,000/yr income you could easily get a mortgage for well over $1,000,000. A personal (unsecured) loan with no collateral (i.e. house, stocks, etc.) you would probably qualify for $250K - $350K. The reason why I know that is that banks are tight with money that is not secured. They will usually loan you a little more than you make if you have a good record with them (amortized over 10 years - assuming you can make the payments).

There is no limit to a personal (secured) loan. It all depends on the value of the asset the loan is secured against.

Answer 5

First congratulations are in order as you and your husband are definitely doing very well for yourselves. With that type of income and guessing excellent credit means 700+ and above average 640+. You both or just your husband can buy just about anything you want. I recommend sitting down with your CPA and discuss the benefits of owning multiple properties and exactly what type of payment(s) would still allow you to live comfortably. When a Mortgage Consultant sees those scores and income its a no brainer for us. I recommend putting your money to work for you if you haven't already done so. I hope this helps you but if you need help please email me [e-mail].

Answer 6

I could easily qualify you for a loan of 1.25million or more based upon the supplied information. As far as what TYPE of loan, it really depends on what you want out of your program that determines what program and options fit your needs best.

If you went for the FULL 1.25million, on a 30year loan, your payments would be approx. $8,300/mo

Just a rough guestimate and really depends on what you want, how much, and etc...

Hope that helps, call me if you have other questions, I'm happy to answer them.

Answer 7

You seek advice from a lender or a private loan broking provider. won't have the ability to tell you what to anticipate considering you point out no longer something approximately your earnings, money owed, credit, down cost, employment history, or what cost factors you're staring at.

Answer 8

why do u need a loan? u make so much.
u both must be doctors or lawyers..

mmm i doubt u would qualify for most becus u wouldnt fall under the salaray ceilings.. but u can make one!!! yayyyyy

Answer 9

Go to a search engine and look for a loan calculator.just enter your info and it will tell you everything.

Answer 10

Go to a real estate sight and use the calculators to find out. There are titled "How much can I afford?"