Strategy?

The higher your Mortgage Number, the lower the expected rate of interest. While making more money solves most issues, to get a higher score you will want to - Eliminate debt, find a lower interest rate or both.

The next challenge would be to put more money down on a purchase or bring more money in on a refinance. As a rule you're better off having less or no debt verses putting more money down if LTV is not an issue, but play with the 'Result' page to see for yourself.

Interest Only?

Sure, but the mortgage balance does not go down; you're just paying the interest on the loan. BUT, you can pay more per month to reduce the balance. It's up to you.

Amortized

Means that you're payment includes principle and interest typically paid off in 30 years.

One size does not fit all

There is no one lender that covers all situations within the lending spectrum

Gaining access to the widest range of mortgage products with low rates and best terms is the likely goal. Our scoring model utilizes the Best Practices of two Worlds: Dodd-Frank "Qualified Mortgage" (QM) guidelines and an expanded portfolio of mortgage products that provide more opportunities to help realize your mortgage potential.

Getting the balance right

Adjusting Income, Credit, Loan Amount, Debt, and Interest can change your outlook.

Clicking on the Green or Red circles under the dial does just that. This dynamic provides transparency to see what pathway serves you best. The goal is first to get to Green, once there becoming a stronger loan candidate is getting a higher score through various means on the "Results" page.

DTI Ratios (Debt To Income)

Having a lower Interest rate, eliminating Debt or lowering your Loan Amount is like making more money. The relationship of one or all of these together is a powerful force for loan qualification. Making more money also works as your housing cost become lower compared to your income. That is the point here, affordability through low DTI ratios is less risk for lenders.

LTV (Loan To Value)

LTV is also an important ingredient for loan qualification. All the income in the World will not help you if your LTV (Loan To Value) does not meet guidelines on a refinance. That is, if you owe more on your property than the value, lenders will not lend because of the risk.

$0.00 - $424,100 up to 95% LTV

$417,101 - $636,150 up to 90% LTV

$625,151 - $2,000,000 up to 80% LTV

* These are guideline examples and will vary. The point is if you're above these guidelines, LTV greater than above percentages - your score will read 375 as you will not qualify based on LTV issues.

Private Mortgage Insurance or PMI

With little money down on a purchase - additional monthly costs are associated with the payment, either baked into a higher rate or as a separate monthly dollar amount (MI or Mortgage Insurance) to insure against a default risk. The Insurance companies take on some of the risk before the bank does. Everything works great when people make their payments!

Credit

Your credit has nothing to do with qualification ratios, having a higher credit rating simply makes you more trustworthy and can serve as a compensating factor for underwriters to approve or decline loans. Your credit can help or hurt you in certain situations!

All of this is executed in a range between 375-1000. Having a green logo in our dial represents a successful result, having a higher score further strengthens your intention. Not having 1000 does not preclude you from success, having all Green with scores below 1000 are successful too!

Green, Grey or Red? Our Logo was designed to change color based on your situation. Green is Success, Gray is Marginal and Red is a Negative result.

1000 Red or Grey? Again, while income solves most issues, this situation here can be frustrating. LTV (Loan To Value) or too much Debt can be the issues. To correct the LTV issue, you need a higher property value or lower your loan amount. Both are difficult and there is only one that you can control short term. Lowing your loan amount should correct this immediately;

The lower part of the dial As a gage to your strengths and weaknesses, the Red and Green areas on the lower part of the dial scale these levels. Ideally all Green is best but some Red works too, with a green Logo!