Ability-to-pay rule ensures that you can afford your mortgage

When you request a mortgage, it can sometimes be difficult to understand how much of a monthly payment you can afford. Often, he must take into account additional costs and property taxes that adds the cost basis of your monthly payment.
You can't always rely on a mortgage broker or lender to make sure that you get a prime loan that you can afford.
That is why the Protection of consumers (CFPB) Finance Office introduced the rule of the ability-to-pay.
Under the new rule, lenders must ensure that you repay the loan plus interest long term.
CFPB, to do this, lenders should check the following points before you can issue a loan:

Current income or resources;Current employment status;Credit history;The monthly payment of the mortgage;The monthly payments on all other loans related to property;Monthly payment for other mortgage-related obligations (e.g. taxes); other debt securities; the monthly income debt ratio andthe or residual income the borrower would be taking the mortgage. (Debt ratio is the consumer's total monthly debt divided by the total monthly gross income).

These rules help protect you from the funders who may try to sell you an irresponsible mortgage that you can't afford.
Learn more about the rule of the ability-to-pay.
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