Which Mortgage Companies are Best To Work With for Someone With a High Debt-to-Income Ratio?
I have a high debt-to-income ratio. Which mortgage companies are best to work with?
There are many mortgage companies that specialize in financing for potential home buyers with high debt-to-income ratios and other credit problems - and I cannot name the best mortgage companies, because a mortgage depends so much on your specific situation.
I can tell you, as with all major financial decisions, I HIGHLY recommend getting competing quotes... don't take the first offer... take the BEST offer from the best mortgage company for YOU. Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at:
Because there are so many mortgage brokers and lenders willing to assist consumers with credit problems, I do not wish to recommend a specific company. Rather, I advise you to shop around with various different lenders to find the one offering you the best deal. I encourage you to visit the Bills.com Mortgage Resources page, where you can read about the various types of mortgages available on the market and determine what type of loan you are interested in borrowing. If you enter your contact information, several pre-screened mortgage brokers contact you to discuss the options available to you.
Keep in mind that the sub-prime mortgage market, which specializes in lending to people with credit problems, has all but disappeared. This has made finding a mortgage extremely difficult for people with less than perfect credit or high debt-to-income ratios. Once you have spoken with several brokers, if you cannot find a mortgage that fits your needs, or if the mortgage being offered is more expensive than you can afford, you may want to focus on rebuilding your credit before obtaining a mortgage loan.
Since you mention that you have a high debt-to-income ratio, the first step would be to work on paying down your outstanding debts. You can pay down your debts through a "strategic" repayment plan, if you can afford to pay more than your minimum payments on your debts each month. In this plan, you would make the minimum payments on all of your account, but would pay an additional amount each month (whatever you can afford) on the account charging the highest interest rate. Once the account with the highest rate is paid off, you would start paying down your second highest rate account, and so on until most or all of your debts have been repaid. This type of plan would not only help by ridding you of your highest interest debts, it should also improve your credit score by lowering your debt to income ratio and creating a long history of timely payments on all of your accounts. If you cannot afford to pay more than the minimums on your other debts, you may want to think twice before committing yourself to a mortgage loan. If you are already struggling to meet your financial obligations, adding a mortgage may no be a wise move.
I wish you the best of luck in finding a lender willing to work with you to obtain a mortgage. Even if you cannot find an affordable mortgage now, you can put yourself on the right path by paying down your debts to improve your credit rating, which should help you obtain a mortgage in the future.
I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
The mortgage market: what's new?
No surprise that mortgage rates fluctuate. If you are thinking about purchasing a home or maybe considering refinancing your current mortgage, then you want to be up to date on mortgage rates.
Mortgage rates April 10, 2024
According to Freddie Mac, the 30-year mortgage rate for the week of April 10, 2024 stands at 6.88%. This reflects a 6 basis points increase from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
Additionally, Freddie Mac reports that the 15-year mortgage rate for April 10, 2024 is 6.16%, indicating a 10 basis points increase from last week’s rates.
What does the mortgage rate mean for you?
Mortgage rates are one of the key factors that determine your monthly payment. Here are avergage interest rates (APR) for April 14, 2024 based on Zillow date for borrowers with a high credit score (680-740) in the United States:
- 30-year conventional loan is 7.09%
- 15-year conventional loan is 6.29%
Using the rates mentioned above, the monthly payment for a $279,082 30-year-year mortgage would be $1,874. A 15-year mortgage would require a monthly payment of around $2,399.
Experience a smooth mortgage process: Shop around and get pre-approved today!
Shopping around for mortgages and getting pre-approved can make your home-buying or refinancing process easier. Ready to take the plunge? Check Out mortgage rates now for the best options available.
