Should I Pay Debt Or Keep Extra Savings?

Home Forums Purchase Program Should I Pay Debt Or Keep Extra Savings?

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  • #67682
    ltooks
    Participant

    Greetings,

    I am in the beginning states and wanted to know is it better to pay off some of my debt or leaving savings over the mrf amount to buy down interest rate?

    #67690
    Nelsont
    Member

    That is really only a question you can answer after discussing your action plan with your mortgage counselor.

    Is your current debt more than 9% of your DTI?
    Is your current debt preventing you from getting approved for the full 31% housing payment?
    Is your current debt preventing you from being able to buy the type of house you want?
    Is your current debt preventing you from saving your payment shock?

    #67696
    FirstTimePhilly88
    Participant

    @ltooks my MC suggested paying down/off debt to prevent any issues down the line. I’m also trying to save over the MRF for buydown. It’s going to be tight and take some time, but I believe it will be worth it.

    #67706
    ltooks
    Participant

    @Nelsont and @firsttimephilly88 I feel like my mc overshot the mtg payment I qualify for as my income is 52k and student loans monthly debt is 136 but my action plan only shows debt as 25.00. Not sure if im missing something with the way he came to the mtg pymnt of 1400.

    • This reply was modified 2 years, 3 months ago by ltooks.
    • This reply was modified 2 years, 3 months ago by ltooks.
    #67710
    FirstTimePhilly88
    Participant

    @ltooks My MC also gave me a high mortgage payment and I requested to go lower; it cut my payment shock in half. Maybe you can reach back out to your MC and ask for a lower MRF based on a lower mortgage loan amount?

    #67711
    ltooks
    Participant

    @firsttimephilly88 I actually like the payment Of 1400 as taxes are high in Houston Texas and surrounding counties. I just dont wont to be too disappointed when we have to lower the mortgage payment amnt due to inaccurate information.

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