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Mortgage question
Does the amount the bank is willing to lend you have do to with how much of a down payment you have? Or is it based entirely on your income? Because if you have a huge down payment, then isn't that less money that you need to borrow?
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Posted 10/23/09 10:26 AM  |
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KittyGags
LIF Adult
Member since 7/09 5614 total posts
Name:
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Re: Mortgage question
Taking out a smaller loan may enable you to get a better rate...for instance, when we bought our house, we were financing 400K. We took out a 30 year fixed loan at 5.25%.
When I sold my co-op last week, I saw on the papers that my buyer had a 4.8% on her loan! I almost died...and then I realized, because she had a small mortgage, ($175K) she was able to do a 15 year fixed vs a 30, thus paying the bank back faster and less interest...
Also--anything over 417K is a jumbo loan, which is why we HAD to put down 20% vs 10%. The monthly payments didn't differ a huge amount but when that loan went over 417, we got hit with the PMI charges...which were an additional $200 a month...
Edit: I just realized that I never really answered the question, lol--
I think the amount that they're willing to lend you is based off your income vs debt...and not so much on what your down payment is.
Message edited 10/23/2009 10:32:31 AM.
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| Posted 10/23/09 10:31 AM |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: Mortgage question
Its based on a debt to income ratio.
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| Posted 10/23/09 10:41 AM |
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Re: Mortgage question
Okay, debt being rent, food, anything I pay for? Because we don't actually have any debt (no car payments, no student loans, no credit card debt). So would our debt be $0, or is rent and monthly expenses included in the "debt" category?
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| Posted 10/23/09 10:45 AM |
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Salason
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Member since 6/05 9878 total posts
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Re: Mortgage question
It's based on (among other things) income, debt to income ratio, credit score, loan to value ratio (which is impacted by how much you put down and the appraisal value of the house).
As for a loan over $417k being jumbo and having to put down 20%, this is not accurate. The conforming limits were raised in NY so anything over $417 is large balance conforming and you pay about 0.25% more than the conforming rate but do not pay jumbo rates unless the loan is over I believe $729k in NY. You can still put less than 20% down but have to pay PMI.
Message edited 10/23/2009 10:58:59 AM.
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| Posted 10/23/09 10:58 AM |
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KittyGags
LIF Adult
Member since 7/09 5614 total posts
Name:
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Re: Mortgage question
Posted by Salason
It's based on (among other things) income, debt to income ratio, credit score, loan to value ratio (which is impacted by how much you put down and the appraisal value of the house).
As for a loan over $417k being jumbo and having to put down 20%, this is not accurate. The conforming limits were raised in NY so anything over $417 is large balance conforming and you pay about 0.25% more than the conforming rate but do not pay jumbo rates unless the loan is over I believe $729k in NY. You can still put less than 20% down but have to pay PMI.
I thought anything over 417 was a jumbo? Did they change that only in NY because the properties here are so expensive and when you're spending 400 here you're getting an average house, vs spending 400 in NC and getting a palace?
My mortgage is done already but just curious? and the PMI was an extra $250-300 a month!
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| Posted 10/23/09 11:28 AM |
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KittyGags
LIF Adult
Member since 7/09 5614 total posts
Name:
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Re: Mortgage question
Posted by glinda-goodwitch
Okay, debt being rent, food, anything I pay for? Because we don't actually have any debt (no car payments, no student loans, no credit card debt). So would our debt be $0, or is rent and monthly expenses included in the "debt" category?
Our only debt was car payments + insurance and anything carried on your SS #...if theres ever been a claim against you that affects your credit, etc...you should be good to go from what it sounds like!
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| Posted 10/23/09 11:29 AM |
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Salason
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Member since 6/05 9878 total posts
Name:
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Re: Mortgage question
Posted by KittyGags
Posted by Salason
It's based on (among other things) income, debt to income ratio, credit score, loan to value ratio (which is impacted by how much you put down and the appraisal value of the house).
As for a loan over $417k being jumbo and having to put down 20%, this is not accurate. The conforming limits were raised in NY so anything over $417 is large balance conforming and you pay about 0.25% more than the conforming rate but do not pay jumbo rates unless the loan is over I believe $729k in NY. You can still put less than 20% down but have to pay PMI.
I thought anything over 417 was a jumbo? Did they change that only in NY because the properties here are so expensive and when you're spending 400 here you're getting an average house, vs spending 400 in NC and getting a palace?
My mortgage is done already but just curious? and the PMI was an extra $250-300 a month!
Yeah pretty much. They changed it so that it varies by states now e.g. NY is much higher than NC. You still do have to pay a slightly higher interest rate if you're over $417 in NY but it's only 0.25% as opposed to the much higher "jumbo" rates. And you're right, the price of PMI is very high!
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| Posted 10/23/09 11:38 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Mortgage question
It's based on debt to income ratio, but the more you put down, the more lenient they are regarding to how much debt you can carry.
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| Posted 10/23/09 12:41 PM |
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