so what ive read is lenders normally use the 28/36 ratio.
the 28 is the max amount for house payment taxes and insurance.
the 36 is for all debt plus housing costs...
what if you have no debt how will they determine what % of your salary can go to house payment, insurance etc. can it be higher than 28%...
what is the higher end for this ratio. How can I calculate approx how much i could qualify for?????
2007-09-16 16:48:43 · 5 answers · asked by nikkylyn 5 in Business & Finance ➔ Credit
Honestly the whole 28/36% is really outdated. Even with the whole mortgage "meltdown" going on, I've gotten borrowers approved with a back-end debt ratio for 62%.
The bigger question for you is how much of a mortgage payment do you feel you can afford? A lender may easily be able to approve you for more than you can afford within your own budget, so I always throw the question back at my borrowers.
Say you make $5,000 a month, I'd imagine you could easily get approved for 50% as a house payment (including taxes, insurance and PMI is applicable). That means you'd have a maximum total monthly payment at $2,500 with would probably be a sales price of $300,000+
Go over your own buget and come up with a payment range you feel comfortable making and let your lender know about it. So often I approved people for the maximum possible just because they have no idea how much they want. And then when they find out how much the payment is really going to be, they go into payment shock. So it would make the lenders life and your life easier if you come up with a general amount you have in mind.
2007-09-16 16:54:54 · answer #1 · answered by Anonymous · 0⤊ 0⤋
28/36 ratio is the standard. A lender might go as high as 30% with no debt ( car loan, CCs). 40% or more on your house payment will lead you to foreclosure. ( As the news has shown that thousands of families are having this problem.) You will have to put down 20% to avoid PMI. You can check out the calculators on www.bankrate.com that will allow you to figure out how much you can afford.
2007-09-17 00:26:01 · answer #2 · answered by Steve R 6 · 0⤊ 0⤋
Check out http://www.mortgagefigure.com there is lots of information about refinancing, consolidation, bad credit mortgages and more.
2007-09-17 01:02:52 · answer #3 · answered by sideline2084 4 · 1⤊ 0⤋
Here fill in the blanks
http://calculators.aol.com/tools/aol/home01/tool.fcs
http://www.bankrate.com/brm/calc/newhouse/calculator.asp?Iw=0&Ii=0&Ia=0&Io=0&D=0&T=0&R=0&Ei=0&Ex=0&Ec=0&Ea=0&Ed=0&Eo=0&rDirect=no
2007-09-17 18:29:14 · answer #4 · answered by Pengy 7 · 0⤊ 0⤋
im sorry i never can answer these ones because i still live with my mom
2007-09-17 02:14:30 · answer #5 · answered by Christie W 4 · 0⤊ 0⤋