Should I lock in my rate?

Should I lock in my rate? Borrowers ask this question all the time. And you should — you’ve spent a lot of time finding the best deal. If you don’t lock it in, the rate could change. Obviously, if you thought rates were going up, you should lock in the rate. And conversely, if you…

What is a debt-to-income ratio?

What is DTI? DTI stands for debt-to-income ratio. There is a “front” ratio and “back” ratio.  The front ratio is calculated by taking your mortgage payment (which includes principal, interest, taxes, insurance,  and private mortgage insurance if applicable). If you are buying a condo, it also includes homeowner association dues. If you’re buying a co-op,…

Get your docs in a row!

Where’s my what? You just met with your loan officer. You’ve chosen a lender, locked in a rate. He asks, “Where are your docs?” You give him a blank look. “My what?” Your income and asset docs. Your lender can’t approve a loan without your help. You need to provide certain specific pieces of paper…

No Closing Cost Mortgage

Sounds too good to be true, doesn’t it?   But at Amerifund, it’s real. A no closing cost loan. No closing costs – zero – zip – nada.   How do you get one? Just ask any Amerifund loan officer. First, let’s be very clear – these loans are usually (not always) at a higher…

What is Loan-to-Value?

LTV stands for loan-to-value. It is simply your loan amount divided by the lower of the purchase price or appraised value. How to Calculate LTV on a Purchase Let’s say you are buying a house. You negotiated a sales price of $500,000. You are putting down 10%, so you will be borrowing 90% of the…