Sentences with phrase «mortgage ratio»

After that, as it takes time and considerable amounts of cash to drop to the next (lower) mortgage ratio class.

The monthly debt - to - income ratio or residual income the borrower would be taking on with the mortgage

The gross debt service ratio (GDSR) is the percentage of the total of annual mortgage Ratio (GDSR) payment (principal, interest, taxes, heat and half of condominium common element costs, if applicable, plus secondary financing payment and ground rent if applicable) relative to annual household income.

Team CF Top Tip (with a hat tip to one of our readers), if you have been living in the same house for a few years, doing a new price evaluation may help you lower your interest costs / monthly payment as, due to the price increase the newly calculated mortgage ratio may drop you into a lower interest rate class.

In the figure below we have tried to show, for three assumed ROI's, at what Mortgage Ratio your will find the tipping point between benefitting from paying off your mortgage faster or better invest into assets (stock, bonds, ETF's, rental property, etc.).

It will only really happen if the borrower moves from the A-list (of high quality borrowers) to the B - list (riskier borrowers) and red flags for getting on the B - list include: bad credit rating, you're self - employed or have a spotty employment history, you carry a large debt load that's close to the threshold (to understand mortgage ratios, read my blog on the basics of debt ratios and qualifying for mortgages.)

The formula is a lot like that for mortgage ratios:

With falling interest rates, and less mortgage debt, the mortgage ratio has declined significantly.»

The average insolvent homeowner had a mortgage ratio of 90 %.

For example, if you have a Mortgage ratio of 90 %, 10 % of the property (in this case $ 20.000), could have been generating income.

Based on our preferences and the shown interest rate drops per mortgage ratio class, we will aim to initially reduce our mortgage ratio to 95 %.

For example, if your current mortgage value is $ 150.000, and the value of the property is $ 200.000, your mortgage ratio is 75 %, However, if you have just bought your house, with a down payment of say $ 10.000, your mortgage would be $ 190.000 and the mortgage ratio is 95 %.

By looking at the rent - to - mortgage ratio, we can see that an average monthly rent cheque would more than cover a mortgage payment.

We use these figures to calculate the rent - to - mortgage ratio, which compares the average rent to the average mortgage payment a typical homeowner would have to make in that city.