Homebuyer's Financial Indicators
These are insdustry standard indicators used by professionals,
now avaiable to everyday people as simple green and red signals.
Back-End Ratio
A ratio that indicates what portion of a person's monthly income goes towards paying debts. Total monthly debt includes expenses such as mortgage payments, credit card payments, child support other loan payments.
Budget Usage
The budget is an indicator that tells you whether you can finance the investment property with the money you have allocated for the project.
Cost Of Debt
The cost-of-debt indicator compares the percentage of the cost of debt in relationship to the loan amount.
Debt Coverage Ratio
The debt coverage ratio indicator finds out whether the buyer generates enough money to cover the debt for one year.
Front-End Ratio
It is the percentage of your monthly income spent on your mortgage payment, and it is used by lenders to qualify borrowers for a mortgage.
Loan To Value Ratio
The loan-to-value (LTV) is a ratio between the loan balance and the market value of a property expressed as a percentage.
Market Value Percent
The market value percentage indicator compares the market value of the property to its purchase price.
Price Per SqFt
You can arrive at the trending price-per-sq.ft. of a property by adding the price-per-sq.ft. of properties that sold in a given area and divinding by the number properties sold.