Ask our mortgage assistant

Related answers

• Debt Consolidation

  I'm a homeowner with credit card debt. What are my options to pay it off?

  As a homeowner, you have more options than most people: balance transfer cards, a personal loan, a debt management plan, and your home equity through a HELOC, home equity loan, cash-out refinance, or, if you're 62 or older, a reverse mortgage. At The Mortgage Advisory, we steer people toward the option that lowers their Life Rate, the blended rate on everything they owe, and their total cost.

• HELOC & Equity

  What credit score and debt-to-income ratio do I need for a HELOC?

  Requirements vary by program, but many HELOCs look for a credit score in the mid-600s or higher, a debt-to-income ratio under roughly 45% to 50%, and total mortgage debt at or below about 80% of your home's value. Better credit gets better pricing. The Mortgage Advisory will tell you honestly where you stand, and which program fits, before anyone does a hard credit pull.

• Debt Consolidation

  Can I use my home equity to consolidate debt if I have bad credit or a high debt-to-income ratio?

  Often, yes. Paying off your cards at closing removes those payments from your debt-to-income, which can be the very thing that helps you qualify. Depending on your score and age, an FHA cash-out refinance, a Non-QM loan, or a reverse mortgage option may work when a standard HELOC doesn't. The Mortgage Advisory will tell you honestly which path fits, and when to wait and rebuild first.

• Buying

  How much house can I afford?

  Work backward from a monthly payment you're comfortable with, not the maximum a lender approves. A common starting point is keeping your total housing payment (principal, interest, taxes, insurance, HOA, and mortgage insurance) around 28% to 31% of your gross monthly income, and all your debts together under about 36% to 43%. At The Mortgage Advisory, we show you both numbers, what you qualify for and what you can live with, before you ever make an offer.

• Debt Consolidation

  Can I use a reverse mortgage to pay off my credit cards and other debts in retirement?

  Yes. Homeowners 62 and older can use a reverse mortgage, or a reverse mortgage second that keeps their current first mortgage, to pay off credit cards, medical bills, and other debts, with no required monthly mortgage payment on the reverse loan. You still pay property taxes, insurance, and upkeep, and the balance grows over time. The Mortgage Advisory arranges both in California, Texas, Florida, and Colorado.