05 Oct 2021
By Mark Feder

The Top Benefits Of Having Mortgage Debt

Mortgage
The vast majority of people need to take out a loan to purchase a home. While there are many forms of debt that people would rather avoid, some types of debt can actually be a positive. This includes mortgage debt. What are a few of the top benefits of having mortgage debt? Access To Extra Liquidity One of the biggest benefits of having mortgage debt is that homeowners will have access to more liquid cash. If someone spends all of their money buying a house in cash, they might not have anything left over to cover other expenses. Examples include…
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05 Nov 2019
By Mark Feder

How Does My Existing Debt Affect Getting A New Mortgage?

Mortgage
Carrying debt is a common problem that people have. Some of the most common types of debt include student loans, credit cards, and motor vehicles. When you are interested in buying a new home, you often think about whether or not your debt is going to hurt your chances of qualifying for a new mortgage. Fortunately, you may still get a new home with that debt. There are several factors that may determine whether or not you qualify. Your Debt to Income Ratio The debt to income ratio is a major factor that the mortgage lender is going to consider…
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31 May 2018
By Mark Feder

Understanding Your Debt To Income Ratio

Mortgage
When you are filling out a mortgage application, the lender will be asking you for specific financial information. One of the reasons they ask for this information is to enable the underwriter to calculate your debt to income ratio. The debt to income ratio is what most mortgage lenders use to determine the level of risk they are taking when they agree to provide you a mortgage. Most mortgage lenders will use your debt to income ratio to determine your interest rate, down payment requirements, and in some instances, escrow requirements. How Lenders Calculate Debt to Income Ratio When your…
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