Welcome Home!: December 2011

Tuesday, December 20, 2011

Debt-to-Income

When mortgage companies are qualifying you for a mortgage, they look at two types of debt-to-income ratios – Front end and Back end ratios.

Front end ratio-This is figured by dividing your monthly income by your new proposed mortgage payment.

Back end ratio – This is figured by dividing your monthly income by your total monthly debt (including your new proposed mortgage payment). Your monthly debts may include auto payments, credit cards, installment loans, etc. They do not include cable, electric, insurance, cell phones, or items like that.

Each loan type has different limitations for the front and back end ratios. Usually the front end ratios range around 29-31%, where the back end ratios range around 41-43%.

Call me today for more details!

Danielle Hifko
New American Mortgage
910-581-6398

Wednesday, December 14, 2011

What is PMI?

PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.

Benefits of PMI
PMI plays an important role in the mortgage industry by protecting a lender against loss if a borrower defaults on a loan and by enabling borrowers with less cash to have greater access to homeownership. With this type of insurance, it is possible for you to buy a home with as little as a 3 percent to 5 percent down payment. This means that you can buy a home sooner without waiting years to accumulate a large down payment.
PMI is not added to VA loans. It is used on FHA, USDA, and Conventional financing.

Contact me today for more information!

Danielle Hifko
New American Mortgage
910-581-6398

A Touch of Luxury Living at an Affordable Price!

American Homesmith gives each of their homes that extra touch of luxury with all the added finishings throughout their homes. Right now Southwest Plantation has 6 American Homesmith homes that are move-in ready! Take a look at the flyer and if you have any questions or would like to schedule a tour give us a call! (910)346-1227

Saturday, December 10, 2011

$5,000 Selling Agent Bonus & $2,000 Use as You Choose for the Buyers

Price was just reduced to $190,000 and overlooks hole 1 at Bear Trail Golf Club. This home features 1,667 sq. ft., 3 bedrooms, 2 bath, an open floor plan with a large finished storage room off the garage. It is a must see. Give us a call for a tour (910)346-1227!