Adjustable-Rate Mortgage

You can get started with a pre-qualification process before you begin your search. You’ll know exactly what to expect, the type of monthly payment you’ll have, and the funds you’ll need to close. We know the last thing you need is to find the perfect home and fall in love, only to learn it’s not in your budget.

We use a simple formula to determine your maximum mortgage payment. It adds up to this: your monthly income multiplied by 0.45, minus your liabilities. The resulting number is the highest mortgage payment you may be approved for. From there, you can adjust your search to find the perfect home within your reach.

Figuring out how much home you can afford is a key step in the home-buying process. Start by weighing how much money you have coming in, including your monthly income and any other streams of income (pensions, rental income, investments, etc.), versus how much you have going out to cover costs like student loans, credit card balances, and car payments. Other factors come into play, like how much money you are putting down on the home, property taxes, homeowner’s insurance, and HOA fees that may be associated with the home.

Below is a glossary of terms to help you understand how your home affordability if determined.

• Debt ratio – This is determined by dividing your monthly debts versus your monthly income. Depending on the mortgage product, your debt ratio can usually not exceed 45-50%.
• Loan-to-value – The amount of mortgage you are financing versus the appraised value of the home. The higher your down payment, the lower your loan-to-value.
• PMI – Private mortgage insurance (PMI) is a type of mortgage insurance you are required to buy if you take out a conventional loan with a down payment of less than 20% of the purchase price.

Our Mortgage Specialists are here to help! You can reach out to any of our local professionals for assistance directly via the phone numbers and email addresses provided on our website.