HELP! Mortgage Qualification Question

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  • edporch

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    HELP! Mortgage Scam?

    Mortgage people.
    What's a BALLPARK income and credit rating would a 60 year old woman have to have to get a $220,000 mortgage?

    I know this person who keeps talking to these people on the phone claiming they're give her a mortgage.
    She won't listen to me that she's likely being scammed.
     
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    nra4ever

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    Call the mortgage people at your bank. I’m sure they could easily tell you. I know an 80 year old couple that just got a 30 year mortgage.
     
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    churchmouse

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    Its all about the property.
    Rating/income figure in but what is she trying to buy.

    Never get a Mortgage over the phone on a cold call.
     

    Cameramonkey

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    Using the standard 28% rule, she should make at least $61,600 a year. But at that age, I doubt she will be able to make payments after retirement, unless she has one hell of a retirement plan.

    Not a mortgage/real estate person, I just understand the basic rule of thumb for mortgages should be between 25-28% of gross or less. Not sure how that affects someone nearing retirement, but its gotta be a lower % than that in her case.

    Hell, before the bubble burst, In 2003 when I first bought my house, I was told I qualified for $250,000. Yet I knew damn well I couldnt afford that much house. Instead I found one for $90k in a decent neighborhood and pay less than I would to rent something smaller. Banks and mortgage folks are sharks.
     

    churchmouse

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    Using the standard 28% rule, she should make at least $61,600 a year. But at that age, I doubt she will be able to make payments after retirement, unless she has one hell of a retirement plan.

    Not a mortgage/real estate person, I just understand the basic rule of thumb for mortgages should be between 25-28% of gross or less. Not sure how that affects someone nearing retirement, but its gotta be a lower % than that in her case.

    Hell, before the bubble burst, In 2003 when I first bought my house, I was told I qualified for $250,000. Yet I knew damn well I couldnt afford that much house. Instead I found one for $90k in a decent neighborhood and pay less than I would to rent something smaller. Banks and mortgage folks are sharks.

    The spouse was a loan officer for many years. She was an anomaly. An honest one.
    When they reset before (and the reason for) the bubble saying if you fog a mirror you get a loan she became very unhappy with how it was all going to :poop:
     

    Ingomike

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    Using the standard 28% rule, she should make at least $61,600 a year. But at that age, I doubt she will be able to make payments after retirement, unless she has one hell of a retirement plan.

    Not a mortgage/real estate person, I just understand the basic rule of thumb for mortgages should be between 25-28% of gross or less. Not sure how that affects someone nearing retirement, but its gotta be a lower % than that in her case.

    Hell, before the bubble burst, In 2003 when I first bought my house, I was told I qualified for $250,000. Yet I knew damn well I couldnt afford that much house. Instead I found one for $90k in a decent neighborhood and pay less than I would to rent something smaller. Banks and mortgage folks are sharks.

    Basing a loan off "nearing retirement" would be discriminatory. LOL

    it is illegal to base a loan off common sense...
     

    edporch

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    Thanks for the info everybody.
    I did find that she contacted a website saying she was looking to refinance.
    And then this guy called her some days later.

    It's some outfit called Loan Depot, and the area code he gave her was from California.
    I checked them out on RipoffReport and there were many complaints about them.

    I did finally convince her to find a company that's a known quantity that can be trusted.
     

    Cameramonkey

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    Thanks for the info everybody.
    I did find that she contacted a website saying she was looking to refinance.
    And then this guy called her some days later.

    It's some outfit called Loan Depot, and the area code he gave her was from California.
    I checked them out on RipoffReport and there were many complaints about them.

    I did finally convince her to find a company that's a known quantity that can be trusted.

    My inlaws in the same age range had great luck with Quicken Mortgage when they did a refi.
     

    HoughMade

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    Mortgage people.
    What's a BALLPARK income and credit rating would a 60 year old woman have to have to get a $220,000 mortgage?

    I know this person who keeps talking to these people on the phone claiming they're give her a mortgage.
    She won't listen to me that she's likely being scammed.

    She may be getting scammed, but first things first. Are you talking about a $220,000 home or $220,000 after down payment?

    An example.

    220,000- 20% down = 176,000 financed.

    Depending on taxes, insurance, interest rate, that around $1,100 a month payment for 30 years.

    A good rule of thumb is that your house payment should not be more than 28% of pretax income.

    This means she would need a monthly income of about $4,000, or $48,000 annually to afford the house....IF all her other finances are in line and she doesn't have a lot of other debt REGARDLESS OF WHETHER SOMEONE WILL GIVE HER A MORTGAGE.

    Whether someone will extend credit IS NOT the measure as to whether you can afford something.
     

    edporch

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    She may be getting scammed, but first things first. Are you talking about a $220,000 home or $220,000 after down payment?

    An example.

    220,000- 20% down = 176,000 financed.

    Depending on taxes, insurance, interest rate, that around $1,100 a month payment for 30 years.

    A good rule of thumb is that your house payment should not be more than 28% of pretax income.

    This means she would need a monthly income of about $4,000, or $48,000 annually to afford the house....IF all her other finances are in line and she doesn't have a lot of other debt REGARDLESS OF WHETHER SOMEONE WILL GIVE HER A MORTGAGE.

    Whether someone will extend credit IS NOT the measure as to whether you can afford something.

    She currently has a mortgage for right at $240,000 at 4.25% Fixed that she's paid down to $214,000.
    She's got a proven track record of paying on that for some time.
    Her monthly payment on the mortgage is around $1180.

    Her income is nowhere near $4000 a month, and she makes the payments.

    She pays her property tax and insurance separately with no escrow account.

    She wants to refinance the remaining principal of $214,000 at a lower interest rate.

    My fear is, that even though she's SUCCESSFULLY made the payments every month for years, they'll still not give her a mortgage at a lower interest rate (and a LOWER monthly payment) because on paper she doesn't meet the "guideline".
     

    JettaKnight

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    She currently has a mortgage for right at $240,000 at 4.25% Fixed that she's paid down to $214,000.
    She's got a proven track record of paying on that for some time.
    Her monthly payment on the mortgage is around $1180.

    Her income is nowhere near $4000 a month, and she makes the payments.

    She pays her property tax and insurance separately with no escrow account.

    She wants to refinance the remaining principal of $214,000 at a lower interest rate.

    My fear is, that even though she's SUCCESSFULLY made the payments every month for years, they'll still not give her a mortgage at a lower interest rate (and a LOWER monthly payment) because on paper she doesn't meet the "guideline".

    Never hurts to ask (aka shop around).
     

    Jeepster48439

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    She currently has a mortgage for right at $240,000 at 4.25% Fixed that she's paid down to $214,000.
    She's got a proven track record of paying on that for some time.
    Her monthly payment on the mortgage is around $1180.

    Her income is nowhere near $4000 a month, and she makes the payments.

    She pays her property tax and insurance separately with no escrow account.

    She wants to refinance the remaining principal of $214,000 at a lower interest rate.

    My fear is, that even though she's SUCCESSFULLY made the payments every month for years, they'll still not give her a mortgage at a lower interest rate (and a LOWER monthly payment) because on paper she doesn't meet the "guideline".

    I know a couple of local loan officers that can give her the straight scoop. PM me and I will give you their contact information.
     

    jkaetz

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    She currently has a mortgage for right at $240,000 at 4.25% Fixed that she's paid down to $214,000.
    She's got a proven track record of paying on that for some time.
    Her monthly payment on the mortgage is around $1180.

    Her income is nowhere near $4000 a month, and she makes the payments.

    She pays her property tax and insurance separately with no escrow account.

    She wants to refinance the remaining principal of $214,000 at a lower interest rate.

    My fear is, that even though she's SUCCESSFULLY made the payments every month for years, they'll still not give her a mortgage at a lower interest rate (and a LOWER monthly payment) because on paper she doesn't meet the "guideline".

    Put the info in here and see what offers come up. https://www.nerdwallet.com/blog/mortgages/current-interest-rates/

    The original loan amount is irrelevant for the most part, the value of the house, remaining balance, and credit rating are the largest factors for a refinance. There is little harm in trying but certainly reach out to places and get several rate quotes before committing. They should do that without even doing a hard credit pull. Once you find one you like then jump through the hoops and lower your monthly payment. Keep in mind that if you refinance for another 30 years you can end up paying more in interest over the long term even with a lower rate.
     

    WebSnyper

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    She currently has a mortgage for right at $240,000 at 4.25% Fixed that she's paid down to $214,000.
    She's got a proven track record of paying on that for some time.
    Her monthly payment on the mortgage is around $1180.

    Her income is nowhere near $4000 a month, and she makes the payments.

    She pays her property tax and insurance separately with no escrow account.

    She wants to refinance the remaining principal of $214,000 at a lower interest rate.

    My fear is, that even though she's SUCCESSFULLY made the payments every month for years, they'll still not give her a mortgage at a lower interest rate (and a LOWER monthly payment) because on paper she doesn't meet the "guideline".

    Has she checked with her current mortgage holder? That may be a path of least resistance on a refi.
     
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