Mortgages Salem OR

Mortgages in Salem, OR. Find addresses and phone numbers of local business and services that provide access to Mortgages in Salem, OR.

Gateway Business Bank
(503) 930-9101
660 Hawthorne Ave Se Ste 130
Salem, OR
 
Oregon Housing And Community Srvcs Dept
(503) 986-2000
1600 State Street
Salem, OR
 
Sunset Mortgage Company
(503) 585-4489
198 Commercial St Suite-260
Salem, OR
 
Countrywide Home Loans Inc
(503) 588-3250
3882 Center St Ne
Salem, OR
 
Mortgage First Corporation
(503) 588-3511
615 Commercial St Se # 205
Salem, OR
 
Prime Financial Group Inc
(503) 585-5530
698 12Th St Se
Salem, OR
 
Mortgage West Inc
(503) 371-0289
237 State Street
Salem, OR
 
State Treasury State Ore
(503) 373-7317
350 Winter St Ne Ste 100
Salem, OR
 
State Or Dept Veterans Affairs
(503) 373-2000
700 Summer St Ne
Salem, OR
 
Willamette Valley Bank
(503) 485-2222
101 High St Ne
Salem, OR
 

How Much House Can You Afford?

Debt-to-Income Ratios

To determine your maximum mortgage amount, lenders use guidelines called debt-to-income ratios. This is simply the percentage of your monthly gross income (before taxes) that is used to pay your monthly debts. Because there are two calculations, there is a "front" ratio and a "back" ratio and they are generally written in the following format: 33/38.

The front ratio is the percentage of your monthly gross income (before taxes) that is used to pay your housing costs, including principal, interest, taxes, insurance, mortgage insurance (when applicable) and homeowners association fees (when applicable). The back ratio is the same thing, only it also includes your monthly consumer debt. Consumer debt can be car payments, credit card debt, installment loans, and similar related expenses. Auto or life insurance is not considered a debt.

A common guideline for debt-to-income ratios is 33/38. A borrower's housing costs consume thirty-three percent of their monthly income. Add their monthly consumer debt to the housing costs, and it should take no more than thirty-eight percent of their monthly income to meet those obligations.

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Your Down Payment Affects Everything

Your First Step Toward Buying a Home

When preparing to buy a home, the first thing many homebuyers do is look at "homes for sale" ads in newspapers, magazines and listings on the internet. Some potential buyers read "how-to" articles like this one. The next thing you should do โ€“ before you call on an ad, before you talk to a Realtor, before you shop for interest rates โ€“ is look at your savings.

Why?

Because determining how much money you have available for down payment and closing costs affects almost every aspect of buying a home โ€“ including how you write your purchase offer, the loan programs you qualify for, and shopping for interest rates.

Mortgage Programs

If you only have enough available for a minimum down payment, your choices of loan program will be limited to only a few types of mortgages. If someone is giving you a gift for all or part of the down payment, your options are also limited. If you have enough for the down payment, but need the lender or seller to cover all or part of your closing costs, this further limits your options. If you borrow all or a portion of the down payment from your 401K or retirement plan, different loan programs have different rules on how you qualify.

Of course, if you have enough for a large down payment, then you have lots of choices.

Your loan choices include such varied programs as conventional fixed rate loans, adjustable rate mortgages, buydowns, VA, FHA, graduated payment mortgages and all the varieties of each.

Shopping Rates

A very important reason you need to have at least some idea of your down payment is for shopping interest rates. Some loan programs charge a slightly higher interest rate for minimal down payments. Plus, the interest rates for different loan programs are not the same. For example, conventional, VA, and FHA all offer fixed rate loans. However, the rates vary from one program to another.

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