HomeLight

JUNE 22, 2023

And they need answers to their mortgage questions. Why must there be so many lending companies, all of which have different requirements and terms? As a first-time homebuyer, you’re likely among the 85% of buyers who will apply for a home mortgage instead of paying cash. That number will be your debt-to-income ratio.

Debt-to-income ratio 98

Debt-to-income ratio Mortgages FHA loan Loans 98

HomeLight

OCTOBER 15, 2020

Maximum debt-to-income ratio of 43% (this is known as DTI, and it looks at how much debt you pay each month versus how much income you bring in). Minimum down payment amount of 5% (or even as low as 3% for certain programs for low- to middle-income borrowers). Fixed-rate mortgage.

Loans 98

Loans Debt-to-income ratio FHA loan VA loan 98

Marco Santarelli

MARCH 3, 2025

Here are a few key elements: The Federal Reserve (The Fed): The Fed sets the federal funds rate, which is the interest rate at which banks lend money to each other overnight. While this isnt directly the mortgage rate, it influences it. Inflation: When inflation rises, mortgage rates tend to rise as well.

Mortgages 102

Mortgages Fixed-rate mortgage Debt-to-income ratio Pre-approval 102

Marco Santarelli

OCTOBER 14, 2023

According to Freddie Mac's Primary Mortgage Market Survey (PMMS) , which tracks the average rates for 30-year fixed-rate mortgages since 1971 , mortgage rates have ranged from a record low of 2.65% in January 2021 to a record high of 18.63% in October 1981.

Debt-to-income ratio 88

Debt-to-income ratio Mortgages Fixed-rate mortgage Construction 88

Marco Santarelli

MARCH 6, 2025

Decoding Mortgage Jargon: What Does It All Mean? Let's be real, the mortgage world is full of confusing terms. Let me break down some of the most important ones: Fixed-Rate Mortgage: The interest rate stays the same for the entire loan term. Predictability is the name of the game here! A lower DTI is better.

Mortgages 64

Mortgages Debt-to-income ratio Loans Principal 64

Realty Biz

MARCH 15, 2023

Mortgage Rates Interest rates had stayed low for a long time but began rising last year. For a 30-year fixed-rate mortgage, interest rates have averaged between 6% and 7% recently. With higher interest rates, mortgages are more expensive.

Debt-to-income ratio 111

Debt-to-income ratio Fixed-rate mortgage Mortgages Loans 111

Redfin

SEPTEMBER 6, 2024

Fixed-rate mortgage vs adjustable-rate mortgage There are two main types of mortgage interest rates: fixed-rate and adjustable-rate. A fixed-rate mortgage has an interest rate that remains the same throughout the life of the loan.

Debt-to-income ratio 69

Debt-to-income ratio Fixed-rate mortgage Principal Loans 69

HomeLight

AUGUST 28, 2020

Who sets mortgage interest rates? A mortgage rate is the interest you pay on your home loan. Your mortgage company lends you $250,000. Your mortgage rate is what you’ll pay to borrow that $250,000 over time. Another big way GSEs impact mortgage rates? Your debt-to-income ratio.

Mortgages 104

Mortgages Loans Fixed-rate mortgage Principal 104

Redfin

AUGUST 12, 2024

Higher credit scores typically secure lower interest rates, resulting in lower monthly payments and less paid over the life of the loan. Income stability : Lenders prefer borrowers with a stable income and employment history. Documenting at least two years of consistent income can be crucial.

Loans 74

Loans Mortgages Pre-approval Fixed-rate mortgage 74

Redfin

FEBRUARY 11, 2021

For example, a fixed-rate mortgage carries less risk than an adjustable-rate mortgage and usually has a lower PMI premium. . Some credit unions or lending institutions may not insist on PMI for individual applicants. These borrowers often carry large student debts, which skew their debt-to-income ratio.

Debt-to-income ratio 66

Debt-to-income ratio VA loan Fixed-rate mortgage Loans 66

Realty Biz

SEPTEMBER 30, 2023

In addition to credit scores, lenders also consider factors such as your income, employment history, savings, current debts, and the value of the home you intend to purchase. Demonstrating a stable income, sufficient savings, and a low debt-to-income ratio can strengthen your mortgage application, even with a low credit score.

Finance 96

Finance Debt-to-income ratio FHA loan Mortgages 96

Marco Santarelli

MARCH 27, 2025

The Federal Reserve: The Fed's decisions on interest rates trickle down to mortgage rates. A higher score means you're less risky to lend to. Your Debt-to-Income Ratio (DTI): How much of your income goes to debt payments? Your Credit Score: This is a big one!

Debt-to-income ratio 52

Debt-to-income ratio Mortgages Fixed-rate mortgage Loans 52

Redfin

JULY 11, 2023

The interest rate and term length determine the amount of your monthly payments. What are the different types of mortgages? When considering mortgage options, it’s important to understand the different types available. To improve your chances of getting approved for a mortgage, there are a few key considerations.

Pre-approval 59

Pre-approval Mortgages Pre-qualification Debt-to-income ratio 59

Real Estate Finance HQ

AUGUST 25, 2017

The FHA doesn’t actually lend any money. Instead, the agency guarantees repayment to lenders if a borrower defaults, so that the lenders know they won’t lose money on the deal, thus allowing them to offer competitive mortgage rates on loans that are easier to qualify for than conventional home loans. Housing Ratio.

FHA loan 40

FHA loan Debt-to-income ratio Inspection Loans 40

The Close

DECEMBER 29, 2022

It’s kind of like a fixed-rate mortgage and an adjustable-rate mortgage had a baby. A convertible ARM is a mortgage with a much lower interest rate at the start of the loan, where the interest rate fluctuates during the life of the loan, usually every six months. Debt-to-income ratio (DTI).

Purchase and sale agreement 98

Purchase and sale agreement Title Pre-approval Proof of funds 98

Marco Santarelli

APRIL 6, 2025

Adjustable-Rate Mortgages When considering which type of mortgage to choose, understanding the difference between fixed-rate and adjustable-rate mortgages (ARMs) is crucial. Fixed-rate mortgages maintain the same interest rate throughout the loan term, providing predictability in monthly payments.

Debt-to-income ratio 59

Debt-to-income ratio Mortgages Pre-approval Pre-qualification 59

Marco Santarelli

FEBRUARY 14, 2025

As of February 14, 2025, mortgage rates have slightly increased. The average rate for a 30-year fixed-rate mortgage is now 6.92%, a small uptick of 0.01% from the previous week. This slight increase in rates is just one aspect of a complex and evolving housing market.

Fixed-rate mortgage 52

Fixed-rate mortgage Mortgages Debt-to-income ratio Loans 52