i am 38 and earn a fairly good income over 20k per year what is the longest period i can get a mortgage over and my wife who is a housewife is 7 years younger than me can i use my earnings but her age to get a longer period of repayment as she may be still be working then if and when she returns to work as we have young children , is it also possible to use Child allowance and Tax Credit income to bump up figures for Mortgage purpose ?
Thank you .........................
2006-07-30 02:48:10 · 15 answers · asked by terrystoner1 1 in Business & Finance ➔ Renting & Real Estate
A mortgage is 15 or 30 years.
I hope you make more than $20K a year or I do not think you will get a mortgage at all.
2006-07-30 02:52:34 · answer #1 · answered by UOPHXstudent 4 · 0⤊ 0⤋
Generally, the longest you can have a mortgage over is up until retirement age. They will probably allow you to go beyond retirement age if you've got a good pension and/or based upon your wife's ability to pay. I'm only guessing, but I'd imagine they would allow you up to 30 years.
I don't think state benefits are taken into account when setting figures - but then I may be wrong!!
Your best bet is to go and see an Independent Finance Adviser/mortgage broker. Some might charge, but most make their money from the commission they get from the lender for referring you. You will be told at the begining which is the case.
The mortgage broker/IFA will be able to get you a decision in principle (DIP) where a lender will pre-approve you for any mortgage up to a set amount subject to satisfactory survey and no significant change in personal status. This lasts for three months, and puts you in a good position to make an offer on a property. The DIP process involves checking your credit history. Don't do this too many times, as multiple searches leave footprints on your credit report - which reduces your credit score.
2006-07-30 10:35:53 · answer #2 · answered by nemesis 5 · 0⤊ 0⤋
As far as I know its 30 years but it would be well worth spending some time going around the various mortgage lenders in your area.
Child allowances will not be taken into account.
The best advice I can offer you is do NOT borrow an amount that will stretch your budget. Remember that interest rates are pretty low at present but could easily increase.
The mortgage I did have back in the 90's when interest rates went up to about 15% - OUCH!! So make sure you leave yourself with a cushion, especially if your wife may give up work in the future.
2006-07-31 08:19:56 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Did you mean 200k?
Loan Term
Most home loans are repaid over 10 to 30 years. With a shorter repayment term, monthly payments will be higher, but less interest will be paid over the term of the loan. First-time homebuyers normally take the longest mortgage term offered in order to get the lowest monthly payment.
If you think about it housing is the most expense cost. I am close to your age, 35. I had a big nice home but sold it and bought a foreclosure. If I was you, I would stay in the apt, save up some cash and look to find a foreclosure and own it outright. It might needs some work and you can fix it up as you go but you will be solid. Then once your in the home, you can get a home eq line of credit, you will have 100 percent eq in the home.
Now even if your remotely interested in real estate you can use your Home Eq loan to purchase other properties such as myself. I took that money and bought a duplex and now its paid for with a steady checks comming in from my tenants, do one or two a year and pretty soon you don't have to work anymore other than keeping up your properties, keeping tenants and paying the tax.
2006-07-30 02:50:01 · answer #4 · answered by boxing_fan_4_wlad 5 · 0⤊ 0⤋
Mortgages can be had up to 30 years. Your present age will not preclude you from that term.
Child allowance, support from a divorce, will not be considered.
It could cease at any time, and certainly would cease on the child's 18th birthday.
If you are receiving a "tax credit":, this does not indicate that you have enough income to buy. Only a lender can decide that.
I doubt that a tax credit would be considered in any case.
2006-07-30 02:59:55 · answer #5 · answered by ed 7 · 0⤊ 0⤋
Hi Terry, I doubt you'll be able to use the Child Allowance or Tax credits as income, because they are not earnings, but you're obviously in gainful employment and the mortgage companies are desperate to lend these days. Just don't borrow too much, is my advice. And ignore the stupid person above being rude (not you Bobsled, the message above by Son of whoever will be removed for abuse). Good luck to you Terry.
2006-07-30 02:53:54 · answer #6 · answered by Anonymous · 1⤊ 0⤋
tax credits can be used if your entire taxes were, but most likely we'd use just your pre-tax w2 gross income unless you're self employed.
You have a few options. A. FHA, which allows for higher DTI (debt to income ratios), and B. "stated income" IF you make other income that you wish to "state" but it doesn't show on your taxes. For example, a lot of waiters make a lot of money in tips, but they may not claim taxes (which is an ethical issue, but remember, banks are not at all connected to the IRS: they are just looking at risk). Banks are mostly concerned with your ability to repay the loan. You can choose to "prove less" which means you're higher risk - and higher rate (i.e. get a "No-Doc" loan) - or you can get anything in between "No-Doc" and "Full Doc". A good mortgage lender (like myself) can work with you based on your abilities.
See http://www.RogerV.com/home_buyer_process.htm for general info on this.
2006-08-01 19:13:13 · answer #7 · answered by rogerv_dotcom 1 · 0⤊ 0⤋
You can get any mortgage term that you want...30 years, 40 years or an adjustable. Your income and current debts will determine how much you qualify for. Talk to a mortgage banker. at your local bank.....also, depending on the state that you live in, you may qualify for special rates for first time borrowers, underwritten by the state.
2006-07-30 02:53:02 · answer #8 · answered by bobsled 5 · 0⤊ 0⤋
Hey Terry...
I wish only people who knew what they were talking about would answer these responses....
Disregard everything that has been said to you here!!!!
You can qualify for a loan, even if you only make $20k per year!!! There are specialized loan programs out there that work with people with lower incomes to qualify for a loan...
Wha tyou need to do is talk with a professional that has multiple investors in their portfolio...Myself, i work with over 60 different investors, all of which have different things to offer...
The main thing is with one credit pull, i can shop your loan among my many investors to see who wants to lend to you..
If you on your own shop multiple lenders, they each pull a seperate credit report, which leads to a decrease in your credit score...
Now there is alot of information missing here to give you any type of qualifying figures on this response..
You can call or email me at any time, and i would be happy to let you know what i can do for you..
My name is Jason Fry, i work for Providential Bancorp, a nationwide mortage lender.. You can reach me at 313-264-6448, or email me at jasonf@providential.com
Thank you, and good luck!
Jason Fry
Senior Mortgage Specialist
Providential Bancorp
312-264-6448
2006-08-01 10:21:38 · answer #9 · answered by Anonymous · 0⤊ 0⤋
well if you save enough you could make a great down payment witch woul lower your rate. Either that or find a nice application that will help you go through a mortgage without a lot of pain. Do you have anything saved?
2006-07-30 03:17:31 · answer #10 · answered by overstockto 2 · 0⤊ 0⤋