I have been asked this question many times lately and found a great
chart to help you visualize the impact of interest rate changes. This is top of mind for many prospective home buyers as interest rates creep up slowly from historical lows. In the example below, if you can make a monthly mortgage payment of $2,316, at 3.75% interest, you can qualify for a $500,000 loan. At 4.75%, you can qualify for a $450,000 loan and your monthly payment will be $2,347. Keep in mind that these figures are approximate, and may be affected by other factors such as credit scores, other liabilities, etc.
photo credit: http://bit.ly/2g94RjM
Many of my potential first time home buyers aren't quite
ready yet to buy. Often I hear: I am working on my credit score. I did some
research and here is what I learned:
Credit score is used by lenders to evaluate your credit
worthiness. It's between 300 - 850. Your credit score (aka FICO score)
influences the height of the interest rate you can qualify for and sometimes
also the type of loan. Some loans require a credit score of at least 640. The
higher your score, the better.
Factors that influence your credit score:
Paying on time! The longer you pay on time, the
This just in. The City of Oakland currently has just announced that there are funds available for the Mortgage Assistance Program. This program is designed to assist low and moderate income first time home buyers with the purchase of a home in the City of Oakland, CA. Depending on household income, the mortgage assistance program may assist with 20-30% of the mortgage. That's pretty huge. There is a limited amount of funds available so you have to act now if you are interested. Could be a great time to make a move! Read more about the program here.