What Does Ability To Repay Mean?

by | Jan 30, 2020 | Mortgages:

What are the “Ability to repay” rules about? In a nutshell, as this video shows, new laws require lenders to make a good-faith assessment of a borrower’s capacity to pay back their loan over time. It’s a longer-term view that goes beyond immediate income, debt and...

What Is The Debt-To-Income Ratio (DTI)?

by | Jan 30, 2020 | Mortgages:

Measuring your existing debts against your existing income is one part of a lender’s required assessment of your ability to repay a loan. Like the video says:  debts are existing financial commitments; a car payment is a debt a grocery bill is not. To calculate your...

What Is A Rate Lock?

by | Jan 30, 2020 | New Homes

Mortgage rates change constantly through an unpredictable combination of government policies and economic conditions. This video explains the common term ‘rate lock.’ A “Rate Lock” is a guarantee that a lender will honor a specific combination of interest...

What Is A Qualified Mortgage?

by | Jan 30, 2020 | Mortgages:

As this video explains,  Federal laws put into effect in 2014 and  supervised by the Consumer Financial Protection Bureau define lending practices and loan terms for a new category called “Qualified Mortgages.” They provide stable loan features for consumers and...

What Are VA Home Loans?

by | Jan 30, 2020 | VA Loans:

What Are VA Loans? As the video says, the name is misleading – they’re not loans FROM the VA. The VA – short for “US Department of Veterans Affairs” – is the Federal military veteran benefit system. The VA administers benefits and services for...