Debt Free For Life by David Bach

Author:David Bach [Bach, David]
Language: eng
Format: epub
ISBN: 978-0-307-59117-3
Publisher: Crown Publishing Group
Published: 2010-12-27T16:00:00+00:00

Lending standards are much tighter than they used to be, but if you can meet the requirements, most banks will be happy to refinance your mortgage. The three basic criteria are:

Your debt-to-income ratio, or DTI. Mortgage lenders want your DTI to be less than 38%. That is, your monthly mortgage payments shouldn’t total more than 38% of your monthly income.

Your loan-to-value ratio, or LTV. Most lenders want it to be less than 80%—meaning the total amount you owe on your house should be no more than 80% of what the house is worth. (For example, if your house is worth $200,000, they will not refinance a mortgage of more than $160,000.)

Your credit score. As I noted in Chapter Eight, you’ll generally need a FICO score of at least 620 to even be considered for a loan—and at least 740 to get the best interest rates.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.