The Pros and Cons of a 15 Year Mortgage

Only about one in six borrowers of conventional mortgages have used a 15-year mortgage so far in 2017. No doubt many borrowers shy away from the shorter home loans when they learn that it requires a payment that’s considerably larger.  In the long run, though, a 15-year mortgage saves money.  The cons include, the buyer has more equity tied up and will qualify for a less expensive home than if they’d stretch the loan over 30 years. Our friends at Builder Magazine wrote a nice comparison between the benefits and drawbacks.  Check out the article HERE.  Looking to buy or refinance? Now may be the time to do it as opposed to waiting until next year.  Call the Easterbrook Team at (916) 850-6050 or email us at easterbrookteam@spmc.com.

What to Expect When Qualifying for a Mortgage

To qualify for a home mortgage today, you’re still going to need to meet minimum standards. These include:
• A favorable credit score. Fannie Mae requires a minimum credit score of only 620.
• An appropriate debt-to-income (DTI) ratio. Your DTI number signifies your total recurring monthly debt payments (such as credit cards, student loans and mortgages) versus your gross monthly income. Fannie Mae’s new DTI ceiling is 50 percent.
• An acceptable loan-to-value (LTV) ratio. Your LTV represents the loan’s size compared to the property’s value. Fannie Mae’s maximum LTV is a generous 97 percent.
• A reasonable loan limit. Fannie Mae’s maximum loan limit in most states is $424,100.  In Sacramento, El Dorado, and Placer Counties, Fannie Mae currently allows borrowers to take advantage of a high balance loan amount of $488,750.

Call The Easterbrook Team

916.850.6050

EasterbrookTeam@spmc.com