How Much Mortgage Can I Afford - Gregg Marcus from Somerset Mortgage Lenders Speaks at Panel Discussion
Melville, NY, June 11, 2009 --(PR.com)-- "To establish how much mortgage you can realistically afford, you can use one of two main formulas - called “Qualifying Ratios”. Qualifying ratios examine a person’s income and expenses in order to estimate how much money can reasonably be spent on monthly mortgage payments," said Gregg Marcus, Executive Director of Somerset Mortgage Lenders.
Gregg recently held a panel at their offices located at 290 Broadhollow Rd, Suite 310 E Melville NY 11747
Here is an excerpt:
Buying the Home: Down Payment and Closing Costs This is the first and most obvious factor most people consider in buying a home. How much of a down payment can I afford? And how much can I spend on closing costs?
The down payment is usually between 3% and 20% with most conventional loans preferring down payments within the 10-20% range. Low-to-moderate income households, however, can find programs enabling them to purchase homes with as little as 3-5% down.
Closing costs are fees for various items that must be handled through your lawyer in order for the deal to legally go through. These include: origination fees, title insurance, attorney fees, recording and transfer fees, and pre-pays.
Keeping the Home: Monthly Housing Expenses Taken into account when determining monthly housing expenses are, Mortgage principal, Mortgage interest; Taxes; Insurance. This is commonly written as “PITI” for “Principal, Interest, Taxes, Insurance”
In the case of conventional loans, your monthly housing expenses should fall below 26-28% of your gross monthly income. For FHA mortgages, the qualifying ratio is 29%. If you carry any long term debt (that‘s expenses extending 11 months into the future or more), then the ratios change slightly. Conventional loans allow maximum monthly housing expenses and long-term debt combined of 33-36% of gross monthly income.
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For Press Information, Contact Somerset Mortgage Lenders
Specializing in: debt consolidation, divorce buyouts, home improvement, mortgages, purchase, refinance, reverse mortgages, FHA loans & more
To get a free quote now call 1-800-675-9783 or for PR requests call the publicity department at 631-370-2889
Gregg recently held a panel at their offices located at 290 Broadhollow Rd, Suite 310 E Melville NY 11747
Here is an excerpt:
Buying the Home: Down Payment and Closing Costs This is the first and most obvious factor most people consider in buying a home. How much of a down payment can I afford? And how much can I spend on closing costs?
The down payment is usually between 3% and 20% with most conventional loans preferring down payments within the 10-20% range. Low-to-moderate income households, however, can find programs enabling them to purchase homes with as little as 3-5% down.
Closing costs are fees for various items that must be handled through your lawyer in order for the deal to legally go through. These include: origination fees, title insurance, attorney fees, recording and transfer fees, and pre-pays.
Keeping the Home: Monthly Housing Expenses Taken into account when determining monthly housing expenses are, Mortgage principal, Mortgage interest; Taxes; Insurance. This is commonly written as “PITI” for “Principal, Interest, Taxes, Insurance”
In the case of conventional loans, your monthly housing expenses should fall below 26-28% of your gross monthly income. For FHA mortgages, the qualifying ratio is 29%. If you carry any long term debt (that‘s expenses extending 11 months into the future or more), then the ratios change slightly. Conventional loans allow maximum monthly housing expenses and long-term debt combined of 33-36% of gross monthly income.
###
For Press Information, Contact Somerset Mortgage Lenders
Specializing in: debt consolidation, divorce buyouts, home improvement, mortgages, purchase, refinance, reverse mortgages, FHA loans & more
To get a free quote now call 1-800-675-9783 or for PR requests call the publicity department at 631-370-2889
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Gregg Marcus
631-370-2800
631-370-2800
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