Frequently Asked Questions
How Large of a Mortgage Will I Qualify For?
Historically speaking, you can typically qualify for a loan amount equaling two to two and a half times of your annual household income. So, if you and your spouse have a total income of $50,000, you’ll probably qualify for a loan of $100,000 to $125,000. This figure is variable depending on credit history, Debt to income, and employment history.
What is APR?
APR stands for Annual Percentage Rate. This is described by law and includes costs as if they were part of the interest on the loan amount. The APR can be found on the Truth in Lending Disclosure (once the loan has been applied for). Because the APR shows the overall cost of the loan as a percentage, this is the most useful number to use when comparing competing loans.
APR is not used to calculated monthly payments and should not be confused with the actual interest rate (the rate is used to determine the monthly payment).
How Large of a Mortgage Will I Qualify For?
What is APR?