new grad seeking advice.....

[Anonymous]

im a new college graduate who will soon be looking for a mortgage.  i currently make 110k but i have a whopping 90k in student loans.  will i have to pay down the student loan balance to get a prime rate even if i have ficos above 700 and 10-20% down?  your advice is appreciated....   a follow up question.  assuming the ficos and income listed above how much mortgage debt would sound reasonable...assuming im living within my means

[DallasLoanGuy]

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@Anonymous wrote:
im a new college graduate who will soon be looking for a mortgage.  i currently make 110k but i have a whopping 90k in student loans.  will i have to pay down the student loan balance to get a prime rate even if i have ficos above 700 and 10-20% down?  your advice is appreciated....   a follow up question.  assuming the ficos and income listed above how much mortgage debt would sound reasonable...assuming im living within my means

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You don't have to pay down the loans to get a better rate. Those loans will only affect 'approval' not 'rate'.... as the minimum payments will affect debt ratios.

Reasonable? You tell us.... what kind of payment are you looking for? What are the tax rates there?.... that affects pmt.

 

[Anonymous]

thanks for the advice, so what are my prospects for being approved for either alt-a, subprime, or prime with my current situation? based on your experience.  i was looking to pay about $2000 per month thats all PITI included.  so somewhere in the neighborhood of 300,000. property taxes in the area are 1.1%

[ShanetheMortgageMan]

Alt-A & Sub-Prime as it was once known has pretty much gone away, the new sub-prime/Alt-A is in the form of hard/private money lending or portfolio lenders.  Not going to get into it because you appear you'd qualify for much better than what was, and what currently is, Alt-A & Sub-Prime.

With a 1.1% tax rate, $65/mo for homeowners insurance, using a 5% rate, 20% down, the sales price of $370k would net a $1,993/mo PITI payment.  With 10% down, assuming you'd elect to go with the LPMI form of PMI, at a 5% rate it'd be a $335k sales price yielding a $1,990/mo PITI payment.  Assuming the payments on your student loans isn't more than $3k/mo, your debt to income ratio should be fine to qualify too.