Is there a website to determine how much mortgage I would qualify for?

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I am a homeowner and want to purchase a second property. I would like to find an online calculator to see what additional loan I could receive based on income, debt etc.


I have a 1.25% negative am loan that i need to get out of, i currently owe 673,000.00 for both my first and my second, my question is can i get a loan that is not a negative am loan and have my payments at 2,500.00 including my taxes? Even if i have to get myself into an interest only loan for the first 3-5 years or so, by then my wife and i would be off better financially and can refinance into something fixed. My home is worth about 750,000 so i still have some equity in it and have had this negative am loan for about 2 1/2 years now. I was on lending tree and put my info in the mortgage calculator and it brought out different scenarios and one did have a payment of 2,400.00 is this realistic? i pay 8,000.00 in real estate taxes a year.
I realize i cannot get an interest only loan plus get my taxes paid for $ 2500.00 So can i get a payment of $ 2500 without the taxes? for 673,000?

  1. Reply
    Craig B
    February 3, 2011 at 7:50 am

    You really don’t need a web site for that. If your credit scores are above 740 and you have good cash reserves, your debt to income ratios can be as high as 50%. If you are putting less than 20% down, your debt to income should not exceed 41%. That is a mortgage insurance requirement. Loans are approved with an automated system. The loan officer inputs your data and pushes the button. There are no cut and dry rules. You need to be face to face with your local loan consultant.
    To answer your question, if your debt to income is under 40%, you should be fine.
    Multiply your gross monthly income by .4 and subtract all of your existing monthly payments, including your current mortgage. What is left over is what you can spend on your new second home mortgage.
    I hope that wasn’t to confusing. Again, I would sit down with a lender and have them do this for you.

  2. Reply
    ron d
    February 3, 2011 at 8:14 am

    Your payments @ 6% with $ 666 per month for taxes would put you about $ 4040 per month without including insurance, mortgage insurance and/or hoa.

    Hope this helps.

  3. Reply
    February 3, 2011 at 9:01 am

    It will be impossible to have a payment at that amount without it being a negative amortization. You can refinance it again and have your current loan payments lower. Do you know the margin on your loan. I assume Lending Tree has a large margin on you.

    Your best bet is to keep the negative am and hopefully the equity will outgrow your negative am.

  4. Reply
    February 3, 2011 at 9:14 am

    The scenario that you entered on lending tree did it ask for your fico score? What loan program information was provided to you in the feedback (verbiage)?
    With your existing loans totaling 673k refinanced into one new loan my calculations on an interest only program the mortgage payment would be more than 3k per month (not including the tax payment).
    Suggestion, make sure you read any fine print on Lending Tree website. Also if you are seriously shopping to refinance your loan, do not allow everyone to run your credit. Having your credit ran by different Lenders and Mortgage Brokers may drive your fico score down which may reduce your chances to qualify to receive a good interest rate.

  5. Reply
    February 3, 2011 at 9:20 am

    We have a fixed 30 year with a Interest Only Option on the 10 or 15 years of the loan. I am not sure how that payment worked out to $ 2,400. If you borrowed $ 673K @ 6.% that a I.O. Payment of $ 3,365.00 plus $ 666.67 taxes per month = $ 4,031.67 That negative am loan is junk,,,,,get out while you can

    Leo Namiot

  6. Reply
    Home Loan Guru
    February 3, 2011 at 9:58 am

    Unless I’m reading this incorrectly, you want to get a $ 673,000 refinance loan plus pay $ 8,000 a year in property tax for $ 2,500 a month? I hate to say it, but as far as I can tell this is very unrealistic.

    Others here have said it’s possible, but I’m not sure how.

    I put your basic info into the Quicken Loans affordability calculator (I work for Quicken Loans) and the numbers just don’t come close. Even with a perfect credit score, it’s not possible.

    I think Lending Tree’s calculator results must have been a mistake of some sort.

    Good luck with this and be careful who you work with on your refinance or you could find yourself in a worse situation than now. Make sure you can trust your mortgage professional to get you the best deal available that won’t set you up for financial problems down the road.

  7. Reply
    Arturo S
    February 3, 2011 at 10:27 am

    If you really can’t make the payments for a 5yr ARM Interest Only of about $ 3,365 + taxes and insurance. Then you’ll need to sell the home and get into something affordable, or refinance into another Option ARM with a 5yr fixed margin, I think your currently Option ARM is rising at a monthly rate. If you really need more time before your credit is damaged, I think the best bet will be another Option ARM but with a FIXED MARGIN.

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