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Mortgage question - Page 2

post #16 of 19
5/28/08 at 6:45pm
Quote:
Originally Posted by briancl View Post
I just locked 5.375% on a 5/5 jumbo ARM a couple weeks ago. Of course the rate dropped to 5.25% the next day, but it's back up to 5.5% today, so I feel content.

I had to document everything for my income, but my girlfriend's income (she is on the contract as well) was not much of an issue. That came to us as a relief because she went freelance within the last 12 months, so it could have been dicey. If your income is enough to cover the monthly payment, they may not even care about your wife's income today or in the future.

I think income has more to do with the OP than me. I'm pretty much okay, income wise
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post #17 of 19
5/29/08 at 12:53am
One thing I've learned in the real estate industry is that you can find a loan for just about any circumstance. That doesn't mean you should accept it. Do not take a loan based on expected future earnings. Look at your current situation and always make room for some reserves. That's the advice I used to give all clients for whom I acquired loans. I didn't originate as many loans as some others but my conscience is clean. This is very conservative but I don't usually advice taking a loan where monthly payments PITI (principle, interest, tax and insurance) exceed 25% of your monthly income. Add in any outstanding debts and I recommend no more than 33%. Certainly, others have carried higher loan to debt ratios successfully, but you should not live as a slave to your mortgage.
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post #18 of 19
5/29/08 at 1:50am
Quote:
Originally Posted by Mute View Post
One thing I've learned in the real estate industry is that you can find a loan for just about any circumstance. That doesn't mean you should accept it. Do not take a loan based on expected future earnings. Look at your current situation and always make room for some reserves. That's the advice I used to give all clients for whom I acquired loans. I didn't originate as many loans as some others but my conscience is clean.

This is very conservative but I don't usually advice taking a loan where monthly payments PITI (principle, interest, tax and insurance) exceed 25% of your monthly income. At in any outstanding debts and I recommend no more than 33%. Certainly, others have carried higher loan to debt ratios successfully, but you should live as a slave to your mortgage.

I can't imagine ever signing on the dotted line for a loan I couldn't afford today for the life of the loan. Actually, when building a long term budget, I planned on making payments on significantly less income than I have today... just in case.
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post #19 of 19
5/29/08 at 1:51am
Quote:
Originally Posted by Piobaire View Post
I think income has more to do with the OP than me. I'm pretty much okay, income wise

This certainly may be true.

My comments about documentation were directed at the OP. Sorry for the mix up.
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