Refinance Home Equity MortgageLooking To Refinance Your Home Mortgage Loan?Things You Should Know |
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If you want to refinance your home mortgage loan, how do you know if your family income is enough to qualify you for the loan? Here's a secret you may not know. When looking at your projected mortgage payment and existing debt, some lenders might use ratios such as "28 and 36" to determine whether you qualify for the loan. These are commonly used ratios. In the case of "28 and 36," the 28 refers to the percentage of your gross income (before taxes) that may be spent on housing expenses, including principal and interest on the mortgage, real estate taxes, and insurance. The 36 refers to the income that may be spent for payments on all your debts (including the mortgage): the monthly payments on your outstanding debts, when added to the monthly housing expenses, may not exceed 36 percent of your gross income. When you talk to a lender, find out what ratios will be used to evaluate your application. The best thing you can do is compare different home loan packages to find the best deal. Click on several of the links on this page to compare several sites.
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