NLIC.org

Johnny Said:

What % of net income to spend on mortgage payment?

We Answered:

29% of GROSS income is what is used for loan + taxes and insurances
I am a mortgage banker in TN & KY

Guy Said:

In a mortgage, what is the total paid to the bank?

We Answered:

The $903.00 is the interest only. This would not pay the mortgage off. But you have to give the answer in 2 ways.
$903.00 x 360 = $325,080.00
$237.50 + $47.91 = $285.41 x 360 = $102,747.60 - assuming they don't go up over the next 30 years.
To pay off the loan, for a 30 year fixed, the payment would be $1064.63 x 360 = $383,267.95 + $18,000.00 down & closing costs.

It sounds like he does not know what he is talking about, so answer both ways & don't forget to vote me as best answers!

Justin Said:

first time home buyer: debt to income ratio too high, but i have a credit worthy cosigner with low debt...

We Answered:

If your co-signer has low debt, good credit, and good income, it should work. To co-sign is to sign only the mortgage note (a mortgage note offers a mortgage as proof of a debt and describes the terms under which the mortgage is to be repaid); however this is rarely accepted by mortgage lenders nowadays. It is more likely that the lender will require that you take on a co-borrower. This person signs the note AND deed, among other papers. What this means for you is this person will own the property with you. If you decide to refinance or sell, you will have to have your co-borrower agree to do these things before you can proceed, so choose carefully.

Your co-borrower needs to consider issues too. The important thing to remember is that he/she is agreeing to be fully liable for the debt. If you, the primary borrower, does not make the mortgage payments as required, the co-borrower must make them or be subject to being named in a default and a foreclosure action if the loan is not brought current, items which will be disclosed on their personal credit report. Serious matters

Suzanne Said:

First Time Home Buyer: Debt to Income Ratio Too High, But I have a Credit Worthy Cosigner.. Will this work?

We Answered:

If your co-signer has low debt, good credit, and good income, it should work. To co-sign is to sign only the mortgage note (a mortgage note offers a mortgage as proof of a debt and describes the terms under which the mortgage is to be repaid); however this is rarely accepted by mortgage lenders nowadays. It is more likely that the lender will require that you take on a co-borrower. This person signs the note AND deed, among other papers. What this means for you is this person will own the property with you. If you decide to refinance or sell, you will have to have your co-borrower agree to do these things before you can proceed, so choose carefully.

Your co-borrower needs to consider issues too. The important thing to remember is that he/she is agreeing to be fully liable for the debt. If you, the primary borrower, does not make the mortgage payments as required, the co-borrower must make them or be subject to being named in a default and a foreclosure action if the loan is not brought current, items which will be disclosed on their personal credit report. Serious matters.

Tina Said:

Should I move?

We Answered:

If you provided the written notice at 45 days according to the lease, I would not think anything further is required.

Call your landlord immediately and verify he knows your move-out date. Perhaps refer to your copy of the notice.

Think about your decision and go with your gut instinct. Are you happy in NJ? Do you see job prospects there and not in NC? Can you see being unemployed another 60 days with the reduced rent? You can do this....

Good luck.