UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127236  
Subject: Re: Mortgage Qualifying Date: 6/26/2001 6:09 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 7
Hi freeper,

What's the deal?

Here's the deal...

The lenders CAN calculate your qualification using ratios as high as 45%... which will show you an amount up to $258k.

FORGET THAT!

You want to know what you qualify for? Go backwards!

1) How much can you afford to pay in housing costs per month?
2) Subtract out $250 for taxes and insurance (plus or minus,)
3) figure the real interest rate your qualify for based on credit and choice of program types,
4) Calculate what that payment, at that rate, for that loan ammortization will come up to on a loan amount.
5) Add back in the amount of down payment we're talking about.

Forget the fancy schmancy online calculators... you don't want ANYONE telling you what you can AFFORD. If you can afford to pay more than what other think, FINE... there are loans for you to get more... but don't allow the industry to persuade you to borrow more than you can afford to pay.

Cheers,
Dave Donhoff
Lic. Mortgage Broker
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next

Announcements

Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement