Found 2 blog entries tagged as mortgage.

Should You Buy a Home With Cash?

If you have the ability to purchase a home with cash only, then you’re part of a slim percent of the American population - congrats! Before you head to the bank to withdraw those fat stacks of greenbacks, make sure you consider both the pros and the cons (yes, there are some cons) of skipping the mortgage. 

Pros

Skipping the interest. Buying a home is often a good investment, but buying one flat out may be an even better one. This is because you save on mortgage interest that is usually paid over the life of the home loan – interest that could amount to anywhere between several thousand dollars to hundreds of thousands of dollars.

Avoiding the fees. With an all-cash deal, you skip those loan origination fees, an…

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It’s the No. 1 reason that mortgage applicants nationwide get rejected: They’re carrying too much debt relative to their monthly incomes. It’s especially a deal-killer for millennials early in their careers who have to stretch every month to pay the rent and other bills.

But here’s some good news: The country’s largest source of mortgage money, Fannie Mae, soon plans to ease its debt-to-income (DTI) requirements, potentially opening the door to home-purchase mortgages for large numbers of new buyers. Fannie will be raising its DTI ceiling from the current 45 percent to 50 percent as of July 29.

DTI is essentially a ratio that compares your gross monthly income with your monthly payment on all debt accounts — credit cards, auto loans, student…

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