Good Income and Little Debt

If you fit into this category then your loan should be qualified for the best programs available.  If you have a good history, make good money, and take care of yourself, then banks will see this all as a positive signs and will make your file be easily approved. 

If this is your case, it’s probably a good idea to take a look at 15YR program, and then determine how these payments will fit into your lifestyle.   Most people have the misconception that a 15YR program will be the double that of a 30YR program, and this actually is never the case, its surprising how the payments are just slightly more than the 30YR program.  You can take a look at by plugging in the numbers in the calculator function.

Assuming you have good income and little debt, I assume you have some savings, so it will be best to put some money down, so that you can obtain the best rate.  What is a good down payment amount?  Well, that depends on your particular situation. 

Other things you can consider doing, if you want to payoff your loan earlier, you can choose to make additional payments that will go towards your home principal.  Say if you have additional money that you made, and you have taken care of all your bills, then maybe you want to throw in a few thousands towards your home principal.  Then if you do this on a routine basis and you will end up paying off your home sooner than expected.  You must however be in the right program to be able to do this, and this is done at the very beginning of your loan, as some programs don’t allow for such option.

By Tony Cole 

Tags: Loan_Scenarios

Updated on Thursday, Mar 22 2007 09:30 PM PDT

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