Seniors should expect stricter scrutiny when applying for a mortgage loan. You’ll likely have to provide extra documentation supporting your various income sources (retirement accounts, Social Security benefits, annuities, pension, and so on). Table Of Contents: Why won’t the bank give me a mortgage? How do mortgages loans work? How much can I borrow on … Read more
Mortgages are seen as “good debt” by creditors. Because it’s secured by the value of your house, lenders see your ability to maintain mortgage payments as a sign of responsible credit use. They also see home ownership, even partial ownership, as a sign of financial stability. Table Of Contents: How much mortgage interest do I … Read more
Most often, loans are declined because of poor credit, insufficient income or an excessive debt-to-income ratio. Reviewing your credit report will help you identify what the issues were in your case. Table Of Contents: Can I get a 30 year mortgage at 50? Can I get a 30 year mortgage at age 40? Can I … Read more
Yes! Make sure you tell your lender that you want your payment to go toward your principal if you do make advance payments on your mortgage. Some mortgage lenders apply any extra payment you make toward your next monthly minimum. This won’t help you reduce the amount of interest you owe. Table Of Contents: Is … Read more
The 28% rule states that you should spend 28% or less of your monthly gross income on your mortgage payment (e.g. principal, interest, taxes and insurance). To determine how much you can afford using this rule, multiply your monthly gross income by 28%. Table Of Contents: What is a good mortgage monthly payment?Can I get … Read more
You’re never too old for a mortgage loan — and if you’re at least 18, you’re not too young to take out a mortgage loan, either. Mortgage lenders are not allowed to use age as a factor for denying borrowers a mortgage loan. Table Of Contents: What happens if I pay an extra $200 a … Read more
The length of time they look at specifically can vary, but they’ll typically focus on the last six years to see any credit problems you have had. Usually, they will want to check: Missed loan payments. Credit/loan rejections. Table Of Contents: Is mortgage an asset or liability? What is the maximum mortgage interest deduction for … Read more
This probably goes without saying, but some borrowers have been known to miss paying their utility bills and rent in the excitement of buying a home. Lenders will check your finances and will look to see whether you continue to pay your bills on time. Not paying them could impact your approval. Table Of Contents: … Read more
Fixed-rate mortgage or conventional home loans About 90% of home buyers choose a 30-year fixed-rate loan, making it the most popular mortgage type in the country. As its name suggests, the interest rate does not change over the course of 30 years. Table Of Contents: Is a loan or mortgage cheaper? What type of account … Read more
Average 30-Year Fixed Mortgage Rate Rates are at or near record levels in 2021 with the average 30-year interest rate going for 3.12%. Table Of Contents: What happens if I pay an extra $500 a month on my mortgage principal? Do you need a mortgage to buy a house? How much interest do I pay … Read more
