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How Much Home Can You Afford? Complete Calculator Guide

Written by Altitude Home Loans on . Posted in Home Buying, Home Equity Loan, Mortgage.

One of the first questions every homebuyer asks is: “How much house can I actually afford?” The answer isn’t just about what a lender will approve you for—it’s about finding a comfortable payment that fits your lifestyle and financial goals. Here’s everything you need to know about calculating your home affordability in 2026.

The 28/36 Rule: Your Starting Point

The most widely used guideline in mortgage lending is the 28/36 rule, which provides a framework for understanding how much of your income should go toward housing costs.

The rule breaks down into two parts:

Front-End Ratio (28%): No more than 28% of your gross monthly income should go toward housing expenses. This includes your mortgage principal, interest, property taxes, homeowners’ insurance, and HOA fees if applicable.

Back-End Ratio (36%): No more than 36% of your gross monthly income should go toward all debt payments combined—including your mortgage, car loans, student loans, credit card minimums, and any other recurring debt obligations.

While many lenders may approve you for higher ratios (sometimes up to 43-45% on the back end), the 28/36 rule helps ensure you have breathing room in your budget for savings, emergencies, and lifestyle expenses.

Real-World Example: Breaking Down the Numbers

Let’s say you earn $80,000 per year, which equals approximately $6,667 in gross monthly income.

Front-End Calculation (28%): $6,667 × 0.28 = $1,867 maximum monthly housing payment

Back-End Calculation (36%): $6,667 × 0.36 = $2,400 maximum total debt payments

If you have $400 per month in car payments and $150 in student loans, you have $1,850 remaining for your mortgage payment ($2,400 – $550 = $1,850). This closely aligns with your front-end ratio, making you a strong candidate.

Using current mortgage rates around 7% with a 30-year fixed loan, this payment would support a home price of approximately $275,000 with 10% down, or about $310,000 with 20% down.

Key Factors That Determine Home Affordability

1. Your Gross Monthly Income

This is your pre-tax income from all sources—salary, bonuses, commissions, rental income, or side business revenue. Lenders want to see stable, verifiable income that you can document through pay stubs, tax returns, and bank statements.

The higher your income relative to your debts, the more home you can afford. If you’re married or buying with a partner, you can combine incomes to increase your purchasing power.

2. Your Monthly Debt Obligations

Your debt-to-income ratio (DTI) is one of the most critical factors lenders examine. This includes:

  • Car loans and leases
  • Student loans
  • Credit card minimum payments
  • Personal loans
  • Child support or alimony
  • Other mortgage payments (if you own rental property)

What’s NOT included: utilities, groceries, insurance premiums (other than mortgage insurance), cell phone bills, and other living expenses that aren’t debt obligations.

Pro tip: Paying down debt before applying for a mortgage can dramatically increase your buying power. Eliminating a $300 monthly car payment could increase your home budget by $50,000 or more.

3. Down Payment Amount

Your down payment directly affects both your loan amount and your monthly payment. Here’s how different down payment percentages impact your purchase:

3.5% Down (FHA minimum): On a $300,000 home, that’s $10,500 down with a loan of $289,500

5% Down (Conventional minimum): On a $300,000 home, that’s $15,000 down with a loan of $285,000

20% Down (PMI threshold): On a $300,000 home, that’s $60,000 down with a loan of $240,000

The more you put down, the lower your monthly payment and the less you’ll pay in interest over the life of the loan. Plus, 20% or more down eliminates private mortgage insurance on conventional loans, saving you $100-200+ per month.

4. Interest Rates

Even small changes in interest rates significantly impact affordability. On a $300,000 loan:

  • At 6.5% interest: $1,896 monthly principal and interest
  • At 7.0% interest: $1,996 monthly principal and interest
  • At 7.5% interest: $2,098 monthly principal and interest

That 1% difference costs you about $200 per month, or $72,000 over 30 years. Your credit score plays a major role in the rate you’ll receive, which is why improving your credit before applying can pay off substantially.

5. Additional Housing Costs

Remember that your mortgage payment includes more than just principal and interest:

Property Taxes: In Tucson, annual property taxes average about 0.72% of the home’s value, or approximately $225 per month on a $375,000 home.

Homeowners Insurance: Expect $800-1,500 annually in Arizona, or roughly $70-125 per month.

HOA Fees: If applicable, these can range from $50 to $500+ monthly depending on amenities.

Mortgage Insurance: If you put down less than 20% on a conventional loan, or any amount on an FHA loan, you’ll pay mortgage insurance.

What Home Price Can You Afford in Tucson?

With Tucson’s median home price currently around $315,000-$375,000, depending on the data source, let’s look at what income levels support these prices:

For a $315,000 home (7% interest, 10% down):

  • Monthly payment: approximately $2,250 (including taxes and insurance)
  • Minimum annual income needed: $96,000
  • Recommended annual income: $105,000+

For a $375,000 home (7% interest, 10% down):

  • Monthly payment: approximately $2,700 (including taxes and insurance)
  • Minimum annual income needed: $115,000
  • Recommended annual income: $125,000+

These calculations assume minimal other debt. If you have significant car payments or student loans, you’ll need a higher income to qualify comfortably.

Beyond the Numbers: Other Affordability Considerations

Maintenance and Repairs

Budget 1-2% of your home’s value annually for maintenance and repairs. On a $350,000 home, that’s $3,500-7,000 per year, or about $300-600 monthly. This covers routine maintenance, appliance replacements, HVAC service, and unexpected repairs.

Utilities and Services

Homeownership comes with higher utility costs than renting. In Arizona, expect:

  • Electricity: $150-300+ monthly (higher in summer due to AC)
  • Water/sewer: $75-150 monthly
  • Trash: $25-50 monthly
  • Internet: $60-100 monthly

Closing Costs

Don’t forget you’ll need 2-5% of the purchase price for closing costs, in addition to your down payment. On a $350,000 home, that’s $7,000 to $ 17,500 in additional upfront costs.

Emergency Fund

Maintain 3-6 months of expenses in savings after your down payment. Homeownership brings unexpected costs, and you want a cushion for both emergencies and regular home maintenance.

How to Increase Your Home Affordability

1. Improve Your Credit Score: Every 20-point increase in your credit score can lower your interest rate by 0.125-0.25%, potentially saving you tens of thousands over the loan’s life.

2. Pay Down Existing Debt: Reducing your DTI by paying off credit cards or auto loans frees up more of your income for a mortgage payment.

3. Increase Your Down Payment: Save more for a larger down payment to lower your loan amount, reduce monthly payments, and potentially eliminate mortgage insurance.

4. Consider First-Time Homebuyer Programs: Arizona offers down payment assistance programs and favorable loan terms for first-time buyers that can make homeownership more accessible.

5. Shop Multiple Lenders: Interest rates and fees can vary significantly between lenders. Getting quotes from at least three mortgage lenders ensures you’re getting the best deal.

6. Expand Your Search Area: Different neighborhoods in Tucson have vastly different price points. Areas like Rita Ranch, Marana, or Oro Valley might offer better value than central Tucson locations.

When to Wait vs. When to Buy

You’re ready to buy if:

  • You have stable employment and income
  • Your credit score is 620 or higher
  • You have enough saved for the down payment and closing costs, plus an emergency fund
  • Your DTI ratios are comfortably within the 28/36 guidelines
  • You plan to stay in the area for at least 5 years

Consider waiting if:

  • Your job situation is uncertain
  • You have high-interest debt to pay off first
  • You don’t have an emergency fund
  • Your DTI ratios exceed 43%
  • You might relocate within the next few years

The Bottom Line: Find Your Comfortable Number

What you can afford and what a lender will approve aren’t always the same number. Just because you can qualify for a $400,000 home doesn’t mean that the payment will be comfortable for your lifestyle.

Consider your complete financial picture: retirement savings goals, children’s education funds, travel plans, and quality of life. A house payment that consumes all your available income might get you into a bigger home, but it could also create financial stress and limit your ability to enjoy life.

The best home affordability calculation accounts for both the numbers and your personal comfort level with debt and monthly obligations.

Ready to Determine Your Budget?

The first step toward homeownership is understanding exactly how much home you can afford. Our experienced loan officers at Altitude Home Loans can help you calculate your buying power, explore different loan options, and create a strategy that fits your financial situation.

Get pre-approved today to know your exact budget before you start house hunting. Contact us to speak with a loan officer who can provide a personalized affordability analysis based on your unique circumstances.

are va mortgages assumable

Are VA Mortgages Assumable? 

Written by Altitude Home Loans on . Posted in Mortgage.

If you’re thinking about selling your home, but you have a VA loan, you might wonder, “Are VA mortgages assumable?” The short answer is yes, and this can be a powerful selling point to get your full asking price. 

But as with most things in the mortgage world, the details matter. Altitude Home Loans breaks things down in simple terms so you know what to expect.

What Does It Mean for a VA Loan To Be Assumable?

When buyers ask, “Are VA mortgages assumable?” they’re really inquiring whether they can take over an existing VA loan instead of starting from scratch.

An assumable mortgage allows a buyer to do just that. It means they “assume” your interest rate, loan balance, and monthly payment. 

In today’s market, where interest rates are likely much higher than what you locked in years ago, that’s a massive perk for buyers. Imagine you locked in a 3% interest rate a few years ago. Now, mortgage rates are much higher. 

The ability for a buyer to assume your VA loan at that low rate could save them thousands over the life of the loan. That makes your home more attractive, and could even help it sell faster.

Who Can Assume a VA Loan?

A VA loan assumption isn’t limited only to veterans or active-duty service members. In many cases, a civilian buyer can assume the loan, provided they meet the lender’s qualifications. In other words, they must meet specific credit and income requirements before the deal can proceed.

For veterans, this flexibility adds a big advantage when listing a home. A potential buyer doesn’t need to meet the VA loan eligibility requirement of military service to step into your shoes.

The Catch: Lender Approval and Liability

Even though VA loans are assumable, there’s no guarantee that every buyer will qualify for a VA loan transfer. The new buyer must get lender approval. This process ensures the buyer can handle the mortgage payments and protects you from future risk.

Why does that matter? If the lender doesn’t properly release you from the mortgage liability, you could still be on the hook if the buyer stops paying. 

How To Get Started

If you’re selling your home and want to explore a VA loan assumption agreement, don’t try to navigate it alone. The rules surrounding VA loan eligibility, VA loan transfers, and lender approvals can be complex. That’s where we come in.

At Altitude Home Loans, we help buyers unlock the advantages of an assumable mortgage. We’ll guide you through every step, protect you from potential liability, and ensure the process is seamless for you and your buyer.

So, are VA mortgages assumable? Yes, but you have to do it the right way. With the proper guidance, your assumable loan could be the feature that sets your home apart in a competitive market.

Are you ready to learn more about VA loans, FHA mortgages, and other home financing options? Call Altitude Home Loans at (520) 500-1010 and we’ll help you understand your options. 

jumbo vs conventional loan

Choosing Between a Jumbo Loan and a Conventional Loan

Written by Altitude Home Loans on . Posted in General, Mortgage.

Prospective homeowners come to mortgage lenders with all types of questions. Some of the most common queries surround the types of loans they may qualify for. This guide explores the key components of two popular mortgage options. 

Discover the differences between a jumbo vs. a conventional loan, and how to determine which one is best for you. For personalized lending solutions, reach out to the team at Altitude Home Loans. 

How a Jumbo Home Loan Differs From a Conventional One

Lenders typically issue mortgages that fall within the loan limits set by the Federal Housing Finance Agency. These conventional, conforming loans are seen as less risky for lenders, but borrowers may be eligible for a non-conforming or jumbo loan, which exceeds the FHFA’s limit. 

The biggest differences in these two types of mortgages include:

  • Interest rates: Given the higher risk of a jumbo loan, it tends to come with higher interest rates. 
  • Down payment requirements: Homeowners are expected to put down much more up front to acquire a jumbo loan. The requirements can range from 3% down for a conforming loan to 30% down on a non-conforming loan. 
  • Insurance: Conventional mortgages are backed by insurers, while their non-conforming counterparts have no guaranteed insurance. 

How To Tell Which Loan You Qualify For

Are you debating taking out a jumbo vs. a conventional loan? Find out which one you may qualify for based on the criteria below. 

Check Your Credit Score

Lenders run a credit check before approving someone for a mortgage. If you have poor credit, a jumbo loan may not be an option. To qualify for a non-conforming mortgage, borrowers need a minimum credit score of 700, while conventional mortgages accept a score of 620. 

Evaluate Your Debt-to-Income Ratio

Keeping your debt under control is key when applying for a mortgage. Lenders try to steer clear of those with a large debt-to-income ratio, especially if they’re looking to obtain a jumbo loan. 

This type of home loan is suitable for those with a debt-to-income ratio between 36% and 43%. Conventional mortgages have a bit more wiggle room, as they’re less risky for lenders. 

Review Your Cash Reserves

Buying a home is one of the biggest investments you can make. Not only will you need enough money for a down payment, but you’ll also have to put away cash to cover common household expenses. 

Be mindful of your cash reserves if you want to take out a non-conforming loan. Your savings should cover the first year of homeownership expenses. It might be easier to get a conventional mortgage, which cuts this requirement in half.

Discuss Your Options With a Lending Specialist

Now that you know the pros and cons of a jumbo vs. a conventional loan, you can take the guesswork out of qualifying for a mortgage. Altitude Home Loans is here to help you navigate the application process so you can become a proud homeowner. Reach out to us today at 520-500-1010 to explore your lending options. 

what is fha mortgage

Everything You Need To Know About FHA Mortgages

Written by Altitude Home Loans on . Posted in General, Mortgage.

Are you looking to buy a home and searching “What is an FHA mortgage?” As the trusted mortgage lenders in Tucson, AZ, Altitude Home Loans is happy to determine whether you qualify and help you fill out all the paperwork. Learn everything you should know to give yourself the best chance of obtaining these government-backed mortgage benefits.

How FHA Mortgages Differ From Traditional Home Loans

A loan from the Federal Housing Administration has lower requirements and better terms. Though they’re popular among first-time homebuyers, other situations can qualify for FHA loan eligibility.

Take Advantage of Flexible Qualifying Guidelines

Want to buy a home but have a difficult financial situation? You’ll appreciate the lower FHA loan requirements, which include:

  • You must purchase the home as your primary residence.
  • The family must move in within 60 days of closing.
  • An appraiser must find that the home meets safety and livability standards.
  • You must have a credit score of at least 500.
  • You can use a down payment as low as 3.5% if you have a credit score over 580.
  • Borrowers must have at least two years of consistent employment, study, or military service.
  • Most lenders prefer a debt-to-income ratio under 50% and no delinquent debts.
  • Single-unit homes can have a maximum value of about $500,000 in low-cost areas or $1,200,000 in high-cost cities.

Benefit From Assistance Programs and Fewer Penalties

One aspect that many other first-time homebuyer FHA guides forget to mention is the ability to combine these loans with other programs. For example, you can combine them with down payment assistance or gifts accompanied by an official letter. You also won’t incur any penalties if you pay off the mortgage early.

Best Tips for Applying for a Mortgage From the Federal Housing Administration

What is an FHA mortgage? If you want to apply for this government-backed home loan, use the following tips to give yourself the best chance of success.

Organize All Your Documents Before Applying

Gather the following documents so you can apply quickly:

  • Government-issued ID
  • Social Security Number
  • Two years’ worth of W-2s or bank statements
  • Option proof-of-gift letters

Work on Increasing Your Credit Score

While you can have a lower credit score, try to increase it to 580. Below that score, you’ll need a 10% down payment and have higher interest rates. If you’re already above 580, you’re on your way to obtaining this low down payment home loan.

Pay Off Smaller Debts To Lower DTI Ratio

Aim for a debt-to-income ratio below 43%. You likely can’t pay off student or car loans but try eliminating some of your smaller debts. For example, if you have a credit card with a balance of $1,000, paying it off could help you save money in the long term on better loan conditions.

Find Your Next Mortgage With Help From Altitude Home Loans

What is an FHA mortgage? At Altitude Home Loans, we take the time to answer this question and more. Our expert loan officers help you avoid first-time homebuyer mistakes and work hard to find you the best rates.

To start your application process, call 520-500-1010.

what happens to a joint mortgage when someone dies

What Happens to a Joint Mortgage When Someone Dies?

Written by Altitude Home Loans on . Posted in Mortgage.

Do you know what happens to a joint mortgage when someone dies? Many homeowners aren’t aware of this issue until they find themselves in such an unfortunate scenario. Altitude Home Loans breaks down the effects of someone’s death on a mortgage in this post. 

Discover common joint mortgage death implications as well as options for the surviving party. For assistance with this and other lending issues, contact our specialists. 

Mortgage Responsibilities After Death Don’t Change

When someone passes away with an outstanding home loan to their name, the lender still expects payment. The main responsibility of repaying a loan doesn’t go away, but death can affect the source of the money. If you’re the sole person named on the mortgage agreement and you pass away, your heir will have to assume the responsibility. 

After someone’s death, heirs can either repay the loan using funds from the deceased’s estate or sell the house and reimburse the lender after the sale. 

With a joint home loan, co-owner mortgage inheritance typically occurs. Even if one person dies, the other remains on the mortgage and is expected to pay. 

Understanding Surviving Spouse Mortgage Options

Say you’re married and have your spouse as a co-mortgagor on your home loan. What happens to a joint mortgage when someone dies? As long as the co-mortgagors are legally married, the surviving spouse can assume all responsibility for the loan and prevent the home from going through probate court along with other assets. 

During estate planning, joint mortgage agreements are important components worth discussing. Married couples typically see their shares transferred when one spouse dies while avoiding the probate process. However, once the surviving spouse passes away, their heirs must now assume the mortgage through the estate. 

Consider Your Options for Mortgage Repayment Upon a Co-Mortgagor’s Death

Lenders expect home loans to be paid in full, even if one or both parties on the contract pass away. To ensure your loved ones can cover the mortgage should the unexpected happen, experts recommend looking into the following:

  • Mortgage protection insurance
  • Life insurance
  • A will or trust

Mortgage protection insurance acts as a safety net for the loan itself, while life insurance funds may go toward paying off your house once a beneficiary receives them after your death. Creating a comprehensive estate plan, such as a will or trust, allows you to make your final wishes official and provide your loved ones with key information about your assets. 

Consult Lending Professionals About Joint Home Loans

Now that you know what happens to a joint mortgage when someone dies, you can better prepare for the future. Discuss the pros and cons of entering this type of home loan agreement before you commit to anything. Contact the experts at Altitude Home Loans for personalized assistance. 

We understand how death impacts all of the people on mortgage agreements and their loved ones. Our specialists will help you secure a loan that suits your interests. Call 520-500-1010 to get started.

credit score and mortgage rates

Understanding Credit Score and Mortgage Rates Before You Apply for a Home Loan

Written by Altitude Home Loans on . Posted in Mortgage.

Are you intending to purchase a new home? If so, you should know your credit score before contacting a lender. This number is an important factor in annual percentage rates (APRs), yet many prospective homeowners still wonder about the connection between Credit Score and Mortgage Rates.

Altitude Home Loans has a team of respected mortgage lenders in Tucson, AZ, and covers the importance of credit scores and home loan rates. 

What Are Credit Scores?

A credit score ranges from 300 to 850, which lenders use to determine borrower risk. The higher your number, the less likely you are to miss payments. 

FICO and VantageScore are the top two credit scoring companies, and the three credit reporting bureaus are TransUnion, Equifax, and Experian. 

FICO Scores’ Impact on Mortgage Rates

How much does a credit score affect mortgage rates? Depending on your numbers, you might be eligible for certain home loans at higher or lower APRs. It also determines how much of a down payment you must pay if one is necessary. 

In general terms, a higher credit score affords you several benefits, including:

  • Access to more mortgage types
  • Larger loans
  • Smaller down payments
  • Lower interest rates

Mortgage Rates By Loan Type

You don’t have to have a perfect FICO score or VantageScore to obtain a loan for a new home. Understanding credit scores and their relation to interest rates is only one aspect of borrowing for a new house. You should also consider how your score fits with different loan types, including:

  • Conventional Loans. The interest rates for conventional home loans are typically competitive for borrowers with good credit scores. The FICO threshold is about 620. 
  • VA Loans. These home loans are for eligible military personnel, veterans, and their spouses. The rates tend to be lower than conventional loans and don’t require down payments. 
  • Jumbo Loans. A jumbo loan is a non-conforming mortgage with a bigger balance than current conventional loan limits, so borrowers must have a high income and credit score to qualify.
  • FHA Loans. Requirements for Federal Housing Administration home mortgages aren’t as strict as conventional loans. People can get a loan approval with a credit score of 500 and a 10% down payment.

Other Factors That Impact Mortgage Rates

Credit scores aren’t the only factor that affects your ability to borrow money to purchase a property. Others include:

  • Down Payment Amounts. The more you put down on your home upfront, the lower your interest rate will be. 
  • Debt-to-Income Ratio (DTI). DTI compares monthly debt payments to gross monthly income. A low DTI can trigger lower mortgage rates. 
  • Closing Costs. If you don’t pay these fees upfront, they will become part of the loan, raising the interest rate. 

Contact Altitude Home Loans Today

How much does a credit score affect mortgage rates? At Altitude Home Loans in Tucson, AZ, we know how to use credit scores and mortgage credit certificates to help people get the best APR for their new homes. If you’re ready to explore borrowing your options, call Altitude Home Loans at (520) 500-1010. 

How Much Does Credit Score Affect Mortgage Rates?

Written by Altitude Home Loans on . Posted in Mortgage.

Most homebuyers need a mortgage to purchase their dream properties. However, since this is a loan repayable over up to 30 years, lenders often screen potential borrowers thoroughly to determine if they are a good fit for a loan. One of the main criteria they look at includes the individual’s creditworthiness, i.e., their credit score.

How much does credit score affect mortgage rates? Altitude Home Loans, the leading mortgage lenders in Tucson, AZ, looks at the details in this post.

The Different Classes of Credit Scores

When you apply for a mortgage, the lenders will pull a single consolidated report on your credit history from the three major credit bureaus. The report will feature a score that can tell the lender whether you’re a risky borrower or not in one glance. The various classes of credit scores are as follows:

  • 800 to 850 – Excellent
  • 740 to 799 – Very Good
  • 670 to 739 – Good
  • 580 to 669 – Fair
  • 300 to 579 – Poor

Looking at the above numbers, you can say that the right credit score for mortgage applications starts at >700.

How Does Credit Score Influence Mortgage Rates?

How much does credit score affect mortgage rates? Significantly. Lenders look at the score to determine if you can meet up with your mortgage payments. Even more importantly, they use the score to determine the loan terms and the interest rate band to place you in to adequately offset the risk of the loan.

Therefore, people with excellent credit scores tend to get the lowest interest rates. People with fair or poor rates may not get their applications approved. Where it’s approved, the interest rates will be significantly higher than the average.

The importance of credit score on your mortgage application cannot be overemphasized. A difference of 1.9% between the interest rates for two borrowers in the “Excellent” and “Good” score categories could mean a difference of up to $78,000 in total payments over 30 years.

Curious about what your interest rate numbers might be without making an application? You can search “mortgage rate calculator credit score” to find online calculators that will provide you with an estimate.

Other Mortgage Rate Factors

While it’s hard to ignore the credit and mortgage correlation, it’s important to note that the credit score is not the only factor that affects your mortgage rates. Other factors lenders consider include the following:

  • Loan type (adjustable vs. fixed rate) and term
  • The downpayment amount
  • The location of the property
  • Your debt-to-income ratio
  • The lender’s unique policies

Therefore, the debate on home loan interest and credit scores will always be nuanced.

Looking for a Mortgage in Tucson, Arizona? Contact Altitude Home Loans

How much does credit score affect mortgage rates? It’s a question with a clear answer. However, the credit score impact on mortgage rates is not set in stone.

Our loan officers take a holistic look at applications before offering highly competitive rates. We can also discuss other loan options, such as guarantor loans.

Contact us at 520-500-1010 to schedule a consultation.

Top 10 Refinance Mortgage Tips for Saving Money

Written by Altitude Home Loans on . Posted in Mortgage.

If you need an influx of cash, consider refinancing your home. Altitude Home Loans gives you refinance mortgage tips so you can obtain the maximum benefits. When you’re looking for an Arizona refinance mortgage, don’t forget these 10 tips.

1. Optimize Your Credit

Your lender heavily considers your credit score when offering you a new loan. In general, the higher your score, the lower your interest rates. Consider what steps you can take to improve your score before starting mortgage refinancing.

2. Approach Finances Holistically

The equity in your home and your mortgage payments provide a snapshot of your overall financial well-being. Before refinancing, know how much room you have in your budget and consider your debt-to-income ratio. Your finances help your lender decide what terms you’ll receive on your new loan.

3. Gather All Your Documents

One refinance mortgage tip homeowners often overlook includes gathering all the documents they need such as:

  • Bank statements
  • Pay stubs, W-2s, or income verification
  • Down payment source verification (when applicable)
  • Alimony transactions (where it applies)
  • Tax returns for self-employed individuals

4. Compare Rates

Shopping for a mortgage refinance isn’t much different than seeking other goods and services. Obtain quotes from at least three different lenders. Don’t focus solely on the monthly payments: also consider interest rates, duration of the loan, and other benefits like whether you’ll pay closing costs.

5. Consider Other Options

Refinancing your home may not offer the best solution for obtaining the money you need. For example, you can usually achieve better rates on financing a new car than on a mortgage. When able, focus on long-term savings rather than short-term gains.

6. Confirm It Benefits You

Depending on your equity, you can lose money on a refinance. When you factor in things like closing costs and appraising your home, refinancing may not benefit you. Trustworthy mortgage companies should tell you when it’s not a good option.

7. Assess Your Property Value

Most lenders require you to assess your property before refinancing. Invest in a reliable assessor so you gain an accurate property value. Don’t cut corners on this step.

8. Negotiate with Lenders

Many people don’t realize they can negotiate with mortgage lenders. Do you like the interest rates from one lender and the loan terms offered by another? Some lenders will match their competitor’s offers to gain your business.

9. Wait for Lower Rates

If you don’t need the money immediately, consider waiting to refinance during a period of lower interest rates. How can you predict when interest rates will decrease? Ask a financial advisor for reliable predictions.

10. Enlist Expert Help

Don’t shop for a new mortgage alone. Enlist the help of your accountant, real estate agent, and mortgage lender, so you have all the information you need. Find the best experts by looking at their reputations and asking for referrals.

Consult the Mortgage Experts Today

When you follow our refinance mortgage tips, you can better secure your financial future. At Altitude Home Loans, we help you understand what refinance mortgage documents are and work hard to find you the best terms. To start the process, call (520) 500-1010.

can you skip a mortgage payment

Can You Skip a Mortgage Payment? 

Written by Altitude Home Loans on . Posted in Mortgage.

When struggling to pay your bills and make ends meet, finding ways to cut expenses may require sacrifice and creativity. In dire circumstances, you might wonder, “Can you skip a mortgage payment?” 

While it’s certainly possible to miss a mortgage payment and keep your home, not making the monthly payment can have significant consequences for your financial future. Here, the experts at Altitude Home Loans, the top mortgage lenders in Tucson, AZ, explain what can happen. You can get more insights by calling 520-500-1010.

What Happens When You Don’t Make a Mortgage Payment 

First things first: Missing a single mortgage payment will not trigger foreclosure proceedings. Most lenders will not even consider foreclosure until borrowers miss two payments or are 90 days or more in arrears. 

However, that doesn’t mean you can decide not to pay your home loan and expect everything to be fine. Missing just one payment can:

  • Affect your credit score. Most lenders report payments more than 30 days late, causing a drop in your score of up to 100 points or more.
  • Trigger late fees. Most lenders will charge a late fee for any payment received past the due date. 
  • Make next month more expensive. Even when you don’t pay on time, you still have an obligation to make the payment. The mortgage company will expect you to pay the past due amount and your current payment the following month.  

I Can’t Make My Payment This Month — Now What? 

As soon as you realize you cannot make your monthly mortgage payment, get in touch with the lender to discuss the situation. You may be able to work out a payment agreement or other solution to prevent excess fees, damage to your credit, or foreclosure. If the issue is temporary and due to something like an emergency that drained your available funds, and you have a good track record of making payments, you should be able to arrange a workable solution. 

If you find yourself asking, “Can you skip a mortgage payment?” more frequently and struggle to pay every month, you may need a more permanent solution.

Mortgage relief options to consider include the following:

  • Mortgage modification, which changes the loan terms to extend the life of the loan, switch from an adjustable to a fixed rate, or lower the interest rate. 
  • Mortgage refinancing, in which you get a new mortgage at a lower interest rate to pay off the existing loan, reducing your mortgage payments every month. 
  • Forbearance, which allows qualified buyers to reduce or suspend their payments temporarily. 

If none of these options work, and your financial situation doesn’t allow you to make payments comfortably, it may be best to sell your home and find something more affordable. 

Get Help From Altitude Home Loans 

Choosing a local mortgage lender like Altitude Home Loans in Tucson, AZ, means you have someone close to home you can talk to when you’re having trouble with your mortgage. If you need to know “Can you skip a mortgage payment?” or are having trouble paying your loan, call 520-500-1010 for help. 

how many people can be on a mortgage

How Many People Can Be On a Mortgage?

Written by Altitude Home Loans on . Posted in Mortgage.

There are plenty of reasons a pair may want to co-own a property’s mortgage, whether they’re partners or just roommates. They may even want several people to take responsibility for the home’s mortgage repayments, but what are the rules about how many people can be a mortgage at once?

For the curious and those wanting to share the mortgage burden with those who share their home, here’s more from Altitude Home Loans, top-notch mortgage lenders in Tucson, AZ.

How Many People Can Be on a Home Loan Together?

There is no inherent mortgage applicant limit, but lenders’ mortgage applicant eligibility requirements will often complicate matters. If you and three of your friends would like to buy a house together, no mortgage co-applicant capacity rule can stop you. The real question is whether each of you has the credit history and financial means for the process to go through.

The approval process, especially for multiple people, comes with its own hurdles. While there’s no legal limit to your mortgage applicant count, more than four borrowers on a mortgage loan is rare. Conventional loans are less stringent about putting four maximum borrowers on mortgage loans, but for a higher mortgage co-signer allowance, you’ll likely need to manually underwrite the mortgage yourself.

So, if you’re wondering how many people can be on a mortgage, you have your official answer—as many as you want. The primary benefit of multiple names on a mortgage is the cost-sharing, which gives each title deed holder more financial flexibility. Still, the challenges of a four-way co-ownership can be fearsome, so seek expert mortgage advice beforehand.

What’s The Difference Between a Co-Borrower and a Co-signer?

The difference between a co-borrower and a co-signer on a mortgage comes down to ownership. While both parties will have a responsibility toward making the mortgage payments, only a co-borrower owns the property. A co-signer isn’t on the deed, and while this doesn’t make much of a difference in what these participants do each month, it makes a tremendous difference to other things like tax and credit.

Both co-borrowers and co-signers will pay on the mortgage. There’s also the same evaluation process for these parties, alongside the same financial responsibilities. If either a co-borrower or a co-signer falls behind on the mortgage repayments, the consequences will be the same from a legal perspective.

Work With Altitude Home Loans For Your Home Buying

If you’re considering a loan, why not consider working with a local mortgage lender that you can trust? Altitude Home Loans is an expert source of information and assistance for your home purchasing, home refinancing, and loan affairs. Whether this is your first time buying a property or you’re trying to refinance one, our exemplary services can help.

How many people can be on a mortgage in your state? For these answers and much more, reach out to the industry professionals at Altitude Home Loans. Find out more about your potential future home loan options when you call 520-500-1010!