Profile picture for Walter Tang

Walter Tang

Lender

VP of Mortgage Lending (9 years experience)

Specialties:
Purchase Loan,
Refinancing,
Home Equity,
Mortgage Planning

Advice

  • (3 Contributions,
  • 0 Best Answers,
  • 0 Helpful)

Contributions are sorted newest to oldest.

Can I finance mortgage insurance?

Answer

There are certain loan programs that allow you to absorb the mortgage insurance into the rate. By taking a slightly higher interest rate, you will not have to make monthly Mortgage Insurance payments. Some people prefer this method of MI as mortgage interest is tax deductible.

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mortgage must be 31% of monthly income, does that include escrow if i pay it sepr?

Answer

The 31% you are referring to is the Debt to Income Ratio, which includes your monthly debts (Credit Cards, Car Payments, Installment Loans, etc), Mortgage Payment, Taxes, and Insurance.So regardless of whether you pay your escrow (taxes and insurance) separately, you will need to count that payment in your Debt to Income ratio.31% seems a bit low, though, for a lender.

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