When underwriting a loan lenders look at the debt-to-income ratio for a comparison of monthly debts to monthly income, this is a major factor lenders consider. Lenders like to see the ratio at or below 43%, but loans have been approved up to 50%. Example: Let’s say you are salaried and gross $4,000 per month; Lenders use your gross wages, not take home, for calculating the ratio. Assume your proposed house payment is $1,000, you pay $400 in student loans and another $300 per month for an auto loan. Also suppose you have a credit card balance of $3,000 that...
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HOW DOES STREAMLINE REFINANCING WORK?
When someone sees the word “streamline” next to refinance, they think all they need to do is call the lender and their rate will be reduced. Well, it’s not quite that easy. A FHA Streamline refinance applies if you have a FHA mortgage and want to refinance into another FHA mortgage. What you may first want to do is see if you can qualify for a conventional loan first, which may result in a lower payment. But, if not, you can apply for the FHA Streamline refinance. In order to qualify, the mortgage to be refinanced must be current and...
June 8, 2022June 9, 2022
IS A REVERSE MORTGAGE A GOOD OPTION FOR LONG-TERM CARE?
Should you use a reverse mortgage to pay for long-term care? Check out this article published by The Arizona Republic on how to evaluate whether a reverse mortgage is a good option for long-term care. Click link https://bit.ly/3xlKXHM Contact us, we’re happy to discuss reverse mortgages with you. We offer a variety of products and services, ask us how we can assist you today. We work for you, not the lender. Counsel Mortgage Group®, LLC Licensed in Arizona, California, Hawaii and Illinois www.counselmortgage.com 480-502-1000 NMLS #178927 AZ MB #0909580 CA DBO #60DBO43873 HI-178927 IL MB.6761723 Copyright © 2022 Counsel Mortgage...
June 6, 2022June 9, 2022
NEW LOAN LIMITS FOR 2022
Here is a reminder of the loan limits for 2022. The conforming loan limit for a 1-unit property in Maricopa County is $647,200. Loans in excess of this amount are considered jumbo loans. Jumbo loan rates may be higher than conforming loans. The FHA loan limit for 1-unit properties in Maricopa County is $441,600. The loan limits are higher if you are looking to purchase multi-family properties.
June 3, 2022July 29, 2022
IT’S DEJA VU ALL OVER AGAIN
It’s said in investment circles that markets have a memory of about 20 years. Lessons learned more than 20 years ago are forgotten. Those of us around during the inflation of the ‘70s are hard pressed to recall the details. Many of the commercial real estate and financing professionals and practitioners during the 2005-2008 run-up to the Great Financial Crisis (2008-2010) are hard pressed to echo the lessons learned, or even the causes. If participation didn’t leave a financial scar, it’s likely faded from memory. And so here we are – again – with 8+% inflation and...
May 28, 2022May 28, 2022
COUNSEL MORTGAGE GROUP IS NOW LICENSED IN ILLINOIS!
We are excited to announce Counsel Mortgage is now licensed in Illinois! Are you looking to invest in a primary, secondary or vacation home in the state of Illinois? We now broker loans in Illinois. We also broker loans in Arizona, California, and Hawaii. For example, we can help you refinance and take cash out of your Illinois home to make a down payment on a new home in Arizona, California, or Hawaii. We can help you with both loans. Contact Counsel Mortgage Group. We counsel you to find the right loan products for you. Ask us how we can...
May 25, 2022May 25, 2022
DO YOU OWN RENTAL PROPERTIES?
If you own rental properties, you can include the net rental income for qualification. But, how much of this rental income can you include? If you owned the rental for less than a year, and it does not appear on your last tax return, underwriters generally use 75% of the rental income on the lease. You would subtract the mortgage payment, real estate taxes, homeowners insurance, and HOA to get the net rental income for underwriting. If you owned the rental for more than a year, and it is reported on your tax returns, then the calculation is based off...
May 19, 2022May 19, 2022
MEDICAL SCHOOL STUDENT LOAN DEBT
Student loan debt coming out of medical school could take many years to payoff. Lenders recognize this fact. Lenders know it may take several years for medical professionals to reach their full earnings potential. If you just completed a residency program or a medical clinical fellowship program, and your student loans are in deferment or forbearance, lenders may exclude your student loan payment in the debt-to-income ratio, thereby allowing you to qualify for a higher priced home. Contact us and we can help you figure out what you can qualify for. We offer a variety of products and services, ask...
May 15, 2022May 15, 2022
HOW MANY APPROVALS TAKE PLACE WHEN YOU APPLY FOR A LOAN?
Two approvals take place when you apply for a loan. Lenders review both your credit and income, and the collateral. The collateral must be sufficient for the loan to be approved. What if the collateral is a condominium? When the collateral is a condominium, there is increased scrutiny by the lender. This is due to the fact that a condo typically has shared walls, ceilings, or floors, and there is more risk to the lender because the loan is somewhat dependent on the status of the units surrounding the condo. Thus, lenders will ask questions of the Homeowners Association (“HOA”)...
May 11, 2022May 12, 2022
WHAT DOES THE CLOSING DISCLOSURE CONTAIN?
The CD also contains the loan amount, interest rate, monthly payment, and amount due at closing. The Closing Disclosure (“CD”) is the latest version of the costs and prepaid expenses on the loan. The numbers on the CD are intended to be the final figures for closing. The CD must be acknowledged (typically by email) by the borrower at least 3 days prior to the date the loan documents are signed; this gives the borrower time to review the numbers prior to going to the signing, and to eliminate surprises at closing. If you have questions on a CD you...
May 10, 2022May 10, 2022