Wednesday, August 4, 2010

Use Mortgage Calculator to Calculate Debt to Income Ratio

Are you aware of what debt to income ratio means? You will get to know about its importance when you are about to buy a new home. Based on the debt to income ratio, lenders will determine how much money they will offer for your home loan. It is crucial that you understand how debt to ratio is calculated. Check out some of the best ways that will help you in determining what sort of mortgage is reasonably priced for you when it comes to purchasing a home.

Knowing how to calculate the debt to income ratio will help to determine whether it is feasible for you to get a new home. To figure out this, you need to divide monthly operating costs and divide it by the gross income you get. Most of the lenders use this technique to calculate the debt to income ratio. Apart from this, there is another way with which you can find out how much is affordable for you each month.

With great advancements in internet technologies, you can find many websites offering mortgage calculator online. With zero investment, you can avail this calculator and quickly find out debt to income ratio. Spending some quality time online is all that is required. When the debt seem to be higher, chances are that you will have to miss a mortgage payment. Due this, consumer banks reject credit applications from borrowers having a higher debt to income ratio.

The key factor to obtain mortgage loans is to be updated regarding the guidelines banks follow to issue loans. This in turn will help you in achieving financial stability. You can effectively negotiate your debt with your lenders, provided you have a proper understanding of the process lenders follow. Ensure that you maintain low debt to income ratio to be financially free from debts and lead a quality life. Front-end debt, back end debts are the two types of debts available. Front-end debt is primarily used in mortgage loan payment industry. On the contrary, back end debts consider all your monthly debts.

Once you are aware of about debt to income ratio and the consequence of maintaining a higher debt to income ratio, you can avail this time to figure out how much you possess. By doing this you can be sure of availing a home loan. Live a life free from debts by following these simple, yet elegant rules. Do not rush at any cost to get a home loan approved for you. Plan well and calculate your debt to income ration before you could avail a loan.


Sunday, July 25, 2010

Few Steps to Getting Out of Debt

Homebuyers must Reply of the multiple questions, but the priority should be the "How much home can I afford?" in order to Calculate D.T.I.R( Debt income ratio)will offer you a positive idea upon the how much of your total income You can pay for E.M.I payments, including your principal, and total interest, and taxes, also the insurance, these all are known as "PITI."

some experts are also agree on PITI, the complete amount you pay for the mortgage, need not to be crossed the 27 percent of your Net income. for instance the total payment in debt-related expenses like including your own mortgage, and car loan also the payments, and credit card rentals bills, loan disbursement, payments, and any other debtt, shouldn’t exceed 35 percent of your total gross or net income.

So consider that how much can you afford to pay Dollars in every month? The 1st step is to consider your total income. This also includes salary and following:

  • Income from dividends and interest
  • Support payments, or child support
  • Income from commissions or tips
  • Bonuses

The complete figures will help to you in annual income; interest or dividend by 12 will yield your per month gross or net income. Multiplying your per month income by .27 will create an idea about how much you can you afford in per month mortgage related payments.

For instance, if your earning is around $80,000, your monthly income is $6,667. At 27%, you might afford to pay $1,867 on your mortgage every month. At 36% you could have a debt of $2,300 in debt kind of expenses every month.


Saturday, July 10, 2010

What Kind of Information need on Your Credit Report?

There are usually 4 important information you need:

1. know about that Information: Know Complete name, any known aliases, recent and earlier addresses, security in terms of social security number, D.O.B (Date Of Birth) present and earlier employers, and, if need , similar query about your Wife .

2. Basic credit information: The accounts you have with banks, credit-card issuers, details of retailers, some companies, and other Mortgage lenders (A/c are registered by type of multiple loan, such as multiple mortgage, student loan, credit, or installment revolving loan; also the date when You have registered the bank account; also to your credit limit or the total loan amount; and most importantly status over the past 2 or 3 years).

3. Information from Public Record: this includes State, county court statements of banks, tax records, also includes the consumer agencies list.

4. Current Inquiries: This contains the names of those who have received the statements of your credit report within past few year at least (2 years for employment situation).


Wednesday, June 16, 2010

Home mortgage calculator – helping you to assess your affordability

Using a home mortgage calculator is something that you cannot avoid if you are planning to buy a home. And borrowers usually cannot do without one. It is very important to use a mortgage calculator as your finances play a vital role in the home buying process. So, what are the different home mortgage calculators you need to use if you are planning to step into the mortgage market? There are different types of mortgage calculators that you can use so that you can decide how you will plan out your finances.

Sometimes consumers are unable to decide whether it is better to buy or rent a house. You can find out which is a better option, if you use a rent or buy calculator. Few other aspects that are taken into account when you take out a mortgage include the following –

Which is better- An adjustable-rate mortgage or fixed-rate mortgage?

An adjustable-rate mortgage (ARM) is good in the initial years of the mortgage. This is because you have to pay less in the beginning. But ARM is tied to the prevailing mortgage rates in the market, so if it rises, your payments will rise and if the mortgage rates drop, your payments will be reduced too. Your mortgage payments are never stabilized.

If you opt for fixed-rate mortgage (FRM), your payments will be fixed throughout the term of the loan. So, you can find out the difference in the payment you will be required to make if you opt for ARM instead of FRM and vice versa. A home mortgage calculator can help you in this regard.

What should be the loan term?

Often borrowers are unable to decide whether a 15-year loan term or a 30-year loan term will be more beneficial. If a borrower opts for 15-year loan term, the amount that he has to pay each month will be very high. Nevertheless, the rate of interest the mortgage will attract will be very low. On the other hand, a 30-year loan term will allow you to pay less each month but the interest rate will be high.

What is the APR and how will it affect your finances?
Although mortgage APR or Annual Percentage Rate doesn’t affect your monthly mortgage payments but it gives you the total cost of the loan.

If you want to settle for a good mortgage, it is important that you take into account the factors that determine your repayment. In this way you can assess your affordability and settle for a mortgage that will not strain your wallet. You can access home mortgage calculator from different websites that offer them free.


Tuesday, June 15, 2010

Some useful benefits offered by online mortgage quotes

Online mortgage quotes give you a number of benefits when it comes to choosing a mortgage. There were times when obtaining a mortgage loan was a tremendous task. People had to evaluate the whole market for getting an idea about the current mortgage rates and other information. However, things have changed dramatically. At present, you can make yourself accustomed to the existing market rates with the help of Internet. Getting online mortgage quotes is an outstanding technique to compare rates and choose the loan that is right for your needs. By sitting at home, you can get all the details about loan products. Following are some advantages that you can get from online mortgage quotes:


The most significant advantage of online mortgage quotes is the convenience that it offers to the consumers when they are looking for information.

Saving time and money

Online mortgage quotes help you save more time as compared to other methods of obtaining quotes. Requesting for a mortgage online facilitates you with a prompt reply. In addition, when you request for a home loan in person, the lenders are not expected to give a good faith estimate till 3 days following the receipt of the application. In this way, you can save a lot of time and money by not communicating with lenders through e-mails or phone calls. This makes online mortgages more attractive to the loan applicants.


Online mortgage quotes offer you the chance to compare, inspect and evaluate the rates provided by different lenders.


Getting online mortgage quotes is simple. You just have to fill out an online application and the whole procedure is cost-effective for the lender. You don’t have to visit the office of the lender for signing forms. You can also bargain for interest rates which frequently results in a discount for you. The discount can be available as loan origination fees, decrease in interest rates and closing costs. This is the consequence of the immense competition among the online lenders.

Information on closing costs

Those who request for mortgages online can get ballpark figures on settlement or closing costs at the same time when requesting for loan rates.

Safe and secure

Security offered by online mortgage quotes is one more reason why people go for them. Most frequently, lenders fall prey to online mortgage frauds. For preventing the risk of information theft, majority of lenders apply an encrypted transmission for sending your loan details. When the application is finished, the text is converted to a safe code, which ensures minimum risk of information theft.


Saturday, March 27, 2010

Understanding the Merits of a Professional Logo Design

The sign of any company that creates trust is your logo. It is your corporate identity so it should be made in a way that makes it unique and distinctive from the rest of the crowd. A logo is your trademark, an emblem, or a symbol which standout your business. An experienced professional designer has all the expertise required to design your creative logo.

Following are Step by Step tips on how professionals work on their logo design:

Professional logo design experts make sure that the logo they are designing is not exaggerated at all, as these types of logos confuse the audience, so they make sure, the logos they are designing are decent and understandable.

• When it comes to the selection of colors, a professional logo expert knows the meaning of the message sent through the use of colors. For example, blue represents freshness, green symbolizes life and nature. Hence, to design a logo, they use colors that are suitable to the nature of the business.

• They make sure the logo is noticeable and distinguishable weather it is on a big sign board or on a small business card.

Professional logo designers avoid cluster of colors on a design logo, as more colors create problems in conveying the message of the logo effectively to the viewers.

The above are some of the qualities a professional logo designer should possess. By considering the above qualities, you can easily find a suitable logo designer for you. If you find such type of a logo designer, you should not wait any longer and hire him/her immediately to design a logo as these types of designers are not easy to be found.

Hence, you should hire a professional logo designer if you want a creative logo design for your business because they will take care of each and everything of a logo design and deliver the results according to the requirement.


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