Mortgage Approval questions DTI/ Interest Rates

[Anonymous]

I am looking to buy a new house.

I own my current house free and clear. And pay taxes $1400 a year and Insurance $1100 a year.

I plan on selling this house, but not until after I purchase a new one. Basically the day I signon my new house, is  the day I will list it.

Will the mortgage company county that $2500 a month against me for DTI?

Also if going FHA, what should I be expecting for a interest rate with approx a $210,000 mortage 3.5% down and a middle mortgage credit score of 680?

Thanks!

[dragontears]

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@Anonymous wrote:

I am looking to buy a new house.

I own my current house free and clear. And pay taxes $1400 a year and Insurance $1100 a year.

I plan on selling this house, but not until after I purchase a new one. Basically the day I signon my new house, is  the day I will list it.

Will the mortgage company county that $2500 a month against me for DTI?

Also if going FHA, what should I be expecting for a interest rate with approx a $210,000 mortage 3.5% down and a middle mortgage credit score of 680?

Thanks!

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you mean per a year not a month? I think (am not a mortgage lender hopefully one will chime in to confirm or tell me I am way off base) they may count the $208/month (2500/12) into your DTI since you will still have that obligation when your loan closes.

[Anonymous]

Yes, sorry $2500/ year or $208 a month

[DallasLoanGuy]

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@Anonymous wrote:

I am looking to buy a new house.

I own my current house free and clear. And pay taxes $1400 a year and Insurance $1100 a year.

I plan on selling this house, but not until after I purchase a new one. Basically the day I signon my new house, is  the day I will list it.

Will the mortgage company county that $2500 a month against me for DTI?  we will add 2500/12 = 208.33 to dti 

Also if going FHA, what should I be expecting for a interest rate with approx a $210,000 mortage 3.5% down and a middle mortgage credit score of 680?

Thanks!

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[Anonymous]

Yes, if you do not make the purchase of the new home contingent on the sale of your current home, your DTI will be hit with $2500/12 per month.

[Anonymous]

Thanks for the info. ANy idea on what I should expect for an FHA  interest rate with a 680 mortgage score?

[DallasLoanGuy]

ranging 3.875% - 4% last i looked.

market was volatile last week.  so can change any moment

but i wouldnt expect them to climb over 4.25% in the immediate future

[Anonymous]

Probably 3.5%-3.875%. Depends on the lender. http://www.consumerfinance.gov/owning-a-home/explore-rates/?utm_source=checkrates&utm_medium=redirec.... Use this link to get a better idea of what your rate may be.

[Anonymous]

Why would you do an FHA loan?  If you already own a home that you're selling and can toss in the extra 1.5% down to get a conventional and have the ability to drop PMI when you hit 78% LTV?  New FHA rules don't allow you to drop PMI until 11 years after the loan originates.