What loan amount may I borrow?

By
Real Estate Agent with Coldwell Banker Tri-Counties
 Conservative RatiosAggressive Ratios
Debt Ratio 28 / 36 28 / 36 33 / 38 35 / 41 42 / 42 45 / 45
Down Payment 5 %   10 %   20 %   5 %   10 %   20 %  
Max Property Value $154,885   $164,998   $213,532   $187,153   $206,248   $271,021  
Down Payment Amount $7,744   $16,500   $42,706   $9,358   $20,625   $54,204  
Monthly Payment $882   $890   $1,024   $1,066   $1,113   $1,300  
Property Tax (1) $161   $172   $222   $195   $215   $282  
Property Insurance (1) $39   $41   $53   $47   $52   $68  
PMI (2) $118   $97   $0   $142   $121   $0  
Association/Misc Fees $0   $0   $0   $0   $0   $0  
Total Housing Payment $1,200   $1,200   $1,300   $1,450   $1,500   $1,650  

Comments (1)

Deborah "Dee Dee" Garvin
C2 Financial - San Diego, CA
C2 Financial

Barbara, this table is a good start...but nothing about finance fits precisely on a matrix.  Much of the success in the packageing of a loan is in the finesse and nuance of the entire loan package.  It's all about "reading between the lines"!  In short, a poorly presented loan with very low ratios is more likely to be declined than a well documented and fortified file within higher ratios.

Also, ratios and guides vary significantly between lenders, investors and mortgage products.  Ultimately, the packaging (i.e., the ART of putting a loan file together) is KING over ratios.

 

May 27, 2010 08:47 AM