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  • Writer's pictureTina Martin


Moody’s Analytics’ research has characterized the US as (now) Rent-burdened nationally. They draw this conclusion because Wage growth increasingly and consistently trails rent growth. The national average of rent-to-income (RTI) reached 30% for the first time in the past 20-years. What’s yours?

It makes little financial sense to stay in rent when compared to Fanny Mae and Freddie Mac’s qualifying Debt-to-Income ratios (DTI) and Total Debt-to Income Ratios (TDTI). The first ratio, DTI, is what most lenders will approve for Housing alone, but includes Principal, Taxes and Insurance. The second ratio, (TDTI) is what most lenders will approve for Housing + all other Consumer Installment and Credit Card Debt.

On Conventional mortgage programs the DTI and TDTI reflects ratios of 28% and 36% respectively, and usually requires a Credit Score of at least 620. On Government mortgage programs like FHA the qualifying ratios are 31% and 43% and requires a credit score of at least 580. Acceptable ratios and scores can sometimes be influenced by down payment, and there are Zero Down mortgage programs still available and if you qualify First Time Home Buyer Grants.

Call me (330-620-0219) and I can put you in touch with any number of mortgage lenders in the area that can qualify you specifically.

Conclusion… If your rent represents 30% or more of your gross monthly income, and you can qualify for a mortgage at 28%, why pay rent and make your landlord wealthy. Why

not grow your personal and family’s net worth through home ownership?

Let’s talk about Mortgage Interest Rates for a minute. You may remember from earlier Bloggs I explained that the Yield on the 10-Year T-Bill is inversely correlated to Mortgage Interest Rates. This means as the Yield on the 10-Year T-Bill goes up, Mortgage Interest Rates trend down. That’s what was reported yesterday.

CNBC reported that the Yield on the 10-Yer T-Bill was 3.548% and was UP .057%. This would indicate that Mortgage Interest Rates should be trending down, especially if the Yield trend continue to rise. But we all know all the Markets fluctuate and trying to “time” your entry into the Housing Market is difficult at best – or impossible all together. There are Mortgage Features (like to 2:1 Buydown) that can help homeowners “hedge” the Interest Rate Market. So, the best advice and lesson here is to get pre-approved and get in the real estate market by buying a home. Real Estate seldom loses value and only appreciates, and if you can own a home rather than rent…you should seriously consider it. Call me (330-620-0219) and let’s have a no obligation conversation. Or visit my website: to learn more about us and what our clients have to say about your ability and service.

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