Income ratio: Your total monthly housing expense divided by your pre-tax monthly income.
Debt ratio: Your total monthly housing expense plus any recurring debts, i.e., car payments, monthly minimum credit card payments, and other loan payments, divided by your monthly income.
This insurance helps protect a lender if a borrower forecloses on their property. Borrowers pay for the mortgage insurance, allowing lenders to grant loans they might not have otherwise.
That’s up to you. While a 15-year mortgage will save a lot on interest compared to a 30-year, the monthly payments will be much higher. A 30-year mortgage would allow a family to move into a nicer home and still afford the monthly payments. Your mortgage adviser can help you compare the pros and cons of both options.
Yes. Assuming you have sufficient equity, a cash-out refinance enables you to pay off your existing mortgage(s) and may also allow you to take out some of your home equity in a lump-sum cash payment at closing.
