Our mission is simple, transparency to mortgage qualification with a clear understanding of your ability. Empowering you is our goal. Peace, love and understanding is all.
Form meets function
Mortgage Number® is the first-ever platform of its kind. A number system designed for the end user (you!) in the online mortgage space. So we created a dynamic tool that simplifies mortgage qualification. It made no sense to us that one of the largest financial decisions you can make is confusing and impersonal. So we created a number system along with a color dimension that clearly illustrates your overall strengths and weaknesses. The number points to your overall strength as a borrower through the range of 375-1000. The color illustrates if you qualify or not; Green for yes, Gray, you’re there or close based on your situation and Red for no.
Simplicity with elegance. Using our proprietary algorithm, the color recognizes numerous underwriting platforms and opportunities associated with the query you enter. Together, this ushers in a dynamic finish, in where you can interactively adjust your numbers to help meet your goals on our Result page. You now have a fresh approach to your financial needs that leapfrogs the traditional mindset. Advancing you through a self-service process is now a reality.
We provide a progress bar for our number range, 375 starting on the left to 1000 on the right and the MortgageNumber displayed in the middle. These items along with our logo all become either Green, Grey or Red based on your query. The bottom of the dial illustrates your strengths in Green and your weaknesses in Red. Clicking on the Red and Green buttons below the dial can change the red – or green + proportions. The best outcome would be a green 1000 with no red on the bottom. But, with any green number you qualify. Unlock your potential!
On the Result page there are 5 topics under the Dial; Income, Credit, Loan, Debt and Interest. Clicking on the Red and Green buttons will move up or down your Income by 1%, Credit to the next tier, Loan amount by 1%, Debt by 20% and the Interest Rate in 1/8ths (.125, .25, .375, .50, .625, .75, .875).
If you were thinking that the lending system wasn’t designed for me, you were right. With Mortgage Number you can be confident that you’re well equipped taking the next steps with a clear understanding of how you fit into today’s lending environment. Some sites have you fill out form after form with so much personal information to only get to the end having to wait for someone to contact you. Not here.
Win the system*
Mortgage Number provides transparency. Before you graduate to the next level, we provide the opportunity to ‘win the system’ when it comes time to obtain what is best for you in mortgage. The term ‘adulting’ means ‘the accomplishment of mundane but necessary tasks’. We put the ‘skill’ in this task and provide the platform that allows you to do so (if you have the nerve), without the hassle.
Mortgage Number less than 1000?
Sure. You do not need to have a Mortgage Number of 1000 to qualify. Green means that you would qualify based on today’s underwriting standards no matter the number. The higher your Mortgage Number simply means that you’re a stronger candidate for a mortgage, in the lenders eyes. Banks reward this through lower interest rates.
QM & Non-QM Loans
Qualified mortgage (QM) loans and non-qualified mortgage (Non-QM) loans must meet the ability-to-repay rule, among other rules formed in 2014 (Dodd-Frank). Whereas QM and non-QM underwriting standards use two different approaches to qualify your loan, Mortgage Number utilizes both. This convergence of ideas provides you with the best of both worlds when it comes to qualifying for a mortgage.
Non-QM lenders have more flexibility in underwriting guidelines compared to QM underwriting guidelines. Non-QM loans are best for documenting income for self-employed borrowers, investors, foreign nationals and others that QM guidelines do not recognize. Think of non-QM loans as a hybrid that can extend your qualifying reach.
Variables that matter
Income, LTV, debt, credit and interest rates—these 5 variables are essential to the underwriting process and determines a loan approval or denial. We’ve gone deeper, and added two more internal variables, disposable ratios and an over & under percentage.
These 7 variables are built into our proprietary algorithm that creates the Mortgage Number. Something that you can master in seconds, just by clicking buttons. By becoming aware of your strengths and weaknesses, your abilities surface. With this, you’ll be well-equipped to engage in most mortgage situations with confidence.
Pre-Qualified verses Approval?
What is the difference – Pre-qualification is verbal and an Approval is documented. Appraisal and Credit are ordered and verified by the lender. Escrow is opened by your agent and other items remaining can include pay check stubs (or YTD P&L if self-employed), tax returns, source your down payment and/or reserves through bank statements for the lenders underwriter to review.
Mortgage Number is a tool to help you better understand your situation through your own strengths and weaknesses in the mortgage space, the output relies on your input and assumptions. The information provided here is deemed reliable but is not guaranteed for a positive or successful result for loan qualification with any bank, lender or financial institution no matter what your result or Mortgage Number color is. Mortgage Number is intended for planning and educational purposes; a self-help tool.
Mortgage Number is NOT a Bank or Lender, Mortgage Number is NOT a commitment to lend money, Mortgage Number is NOT a qualification for loan or mortgage financing of any kind, Mortgage Number is NOT an approval for any loan, Mortgage Number is NOT an Interest Rate quote.
Our model takes into account – Income, Value, Loan Amount, Monthly Debts, Credit, Existing Second Loans, Cash Out Amounts, Financial Indices, Property Type, Property Use, Property Tax, Insurance, Disposable Income, Traditional Debt To Income (DTI) Ratios, Loan To Value (LTV or CLTV) Ratios, Conforming Loans, High Value Loans, Jumbo Loans and many more points into consideration providing situational meaning to the needs of your event.
There are other variables that our algorithm does not take into account that include:
- Home is under construction
- A past foreclosure
- Bankruptcy in the past
- Any short sale in the past
- Your home has been listed “for sale” in the past 6 months
- Cash reserves
These reasons can also include self-employment income transparencies. Seasoning of income, new job/profession change, seasoning of loans on the property. Credit issues, past short sales, settlements, foreclosures, sourcing income/down payment, among many more. At a minimum, our web site will prepare you for what you may or may not know when it comes to the loan process. This information is also reason to not get financing no matter what our site or Mortgage Number here eludes to.
On the flip side there are circumstances where lending or loans can take place where a successful result is not made here. The ebbs and flows of the marketplace is in constant flux. Lenders competing for market share by rolling out new or different programs.
Numbering differences, inconsistencies, color range movement, amounts and other anomalies can occur do to rounding as a whole number or with-in table ranges. Simply starting over or refreshing the page can correct this or clicking the Clear button.
What is WAYD? What Are You Doing? We all face the path of time. This can be an opportunity to realize the reality of past refinances and your long-term financial outlook. ‘The end justifies the means’ works both ways here; A double edge sword? Refinancing occurs for a number of reasons, life events and we engage.
The basic idea of homeownership is to have a safe enjoyable place to live. Time marches on to a point where we need a secure place to live as we grow older; paying off your mortgage? Owning your home free clear and/or having enough equity to down size in later years is the traditional idea or principle of why we purchased in the first place. Refinancing to a lower rate might save you on your monthly payment, but most of the time you’re starting the 30 year term over.
Pulling cash-out of your house can cost you 10’s of thousands of dollars (or more) by adding more years having a mortgage, essentially you’re going backwards long term even though you might be saving in the short. Something to think about. Pulling money out can be a killer long term, if you have a mortgage, visit the WAYD page and see how you have done.
No. Any lender can commit to terms and approve loans to then change their mind based on a number of reasons mentioned above or others.
Result page – It will be helpful to have the ‘Detail’ tab selected when making adjustments to the Dial; your Mortgage Number. This way you can see the changes in dollars and percentages along with the itemization of monthly costs associated with your loan detail.
A ‘Key’ number you may want to look at is the ‘PITI+Debt’ % or ‘Total Payment’ %. This number is what makes the world go around in mortgage underwriting, also known as the backend ratio. This number is all your monthly housing costs along with your minimum monthly Debt payments added up and divided by your monthly income.
The ‘Advanced’ tab you can select the state for your property taxes to be more accurate on Purchases. For Refinancing there is a default but you can change that number to what is accurate along with your monthly insurance payment.
Private Mortgage Insurance is when you put less than 20% down on your home.
If you have a loan greater than 80% LTV, that is from 79.9% – 100% (or putting down less than 20%), the PMI Premium turns on but defaults to zero. This is because the trend has been that lenders will ‘bake’ the premium into your interest rate. You can turn it on by clicking the red and green buttons and adjust the % or $ amount. It will default to a number to start. You can turn it off by clicking ‘Off’.
Interest Only vs. Amortization
Interest Only or I/O does not have a term because it will never be paid off, it’s Interest Only. Amortized has a set number of years until the balance is zero. PITI is Principle Interest Taxes and Insurance, ITI is Interest, Taxes and Insurance. Why do people select I/O? It has a lower monthly payment.
The lower part of the dial was designed to illustrate your strengths and weaknesses (Red for weak, Green for strength). The 7 ‘variables that matter’ dictate these movements when changes or adjustments are made on the ‘Result’ page.
Lower down payments, higher DTI (Debt to income) ratios and lower credit scores. The risk is diluted through PMI or MIP (Mortgage Insurance Premium). Basically, it’s insurance against mortgage defaults/foreclosure. 100% financing? It’s coming, again and it’s starting with VA loans.
Why does this happen? Two-thirds of the US economy is based on consumer spending. Homeownership is the threshold to all spending. Homeownership expands our economy by creating more tax revenue. It’s an engine that powers our capabilities.
Once this becomes more mainstream (100% financing), we will add a button to our home page with this option…
* Win the system?
Our take on this term simply describes a phenomenon. It started with accumulating travel miles on airlines or rewards for things you’re already doing. Like using credit cards to get discounts or points from hotels to gas for your car. Winning the system right, why not?
Going deeper, look at college. How can one graduate from a better college verse the one accepted to out of high school? How do you win the system here? (If it was easy, everyone would do it) Answer: junior college for two years and transfer into a four year as a junior. Winning the system in mortgage? You found us!
Time is the one commodity we all share. Our goal here is to save you the time necessary to scale your goals with clear understanding of opportunities available in the mortgage space.