Enable Accessibility
×
Close
Personal Online Banking
All personal banking clients, please enter your online credentials here:
e‑Treasury Business Banking
Log in
Safeguarding your online banking sessions is our top priority. For information about how you can help protect your online banking sessions, or if you need additional assistance with your e-Treasury log-in, please contact Client Support at [email protected] or 855.274.2800.

Download our e-Treasury Secure Browser

Business Online Banking
If you need assistance, please contact Client Services at [email protected] or 855.274.2800.
e‑Treasury
Log in
Safeguarding your online banking sessions is our top priority. For information about how you can help protect your online banking sessions, or if you need additional assistance with your e-Treasury log-in, please contact TM Service at [email protected] or 212.575.8020.


Download our e-Treasury Secure Browser

Download the Sterling e-Treasury Token Client


Business Online Banking
If you need assistance, please contact Client Services at [email protected] or 855.274.2800

For optimal viewing experience, please use a supported browser such as Chrome or Edge

Download Edge Download Chrome

Know before you owe: mortgage and home equity key drivers

Published on April 21, 2020 | Jay Brennan

When applying for a mortgage or home equity loan or line, there are some equations that come into play. Here are the most common factors that will be calculated to determine your credit worthiness.

Loan to Value

Loan to Value (LTV), is a percentage of what you owe compared to the home market value. Typically, a lender will order an appraisal to determine the market value. Most lenders will allow up to 80% Loan to Value to get the best rates. For example, if your home’s market value is assessed at $200,000 you would need to owe $160,000 or less to have an LTV equal to or less than 80%. Some, such as Webster, will allow even higher LTV% for qualified borrowers, though terms or pricing may differ.

Debt to Income

DTI or Debt to Income ratio = Gross Monthly Debts divided by your Gross Monthly Income. Total gross monthly debts includes things like your minimum credit card payments, mortgage payments (including taxes and insurance), car payments, and the estimated payment for your new loan/line. Each lender and situation is different, but typically on most home equity loans and lines a ratio under 50% or less is ideal. In other words, if your gross monthly income is $5,000, your monthly debt should not be more than $2,500.

Credit Score

Your credit score will play a big role in whether your lender can approve your loan. It will also influence the interest rate you receive. Generally speaking, higher credit scores equal lower interest rates, if you are applying jointly, most lenders will use the middle score of the 3 repositories. Everyone is entitled to one free credit report from each of the three major credit bureaus every twelve months. Contrary to common belief, checking your own credit will not affect your score.  It’s important to keep an eye on your credit and take action on any false entries that could lower your score.

Related Resources

Personal BankingArticles
Tips for planning a vacation
Daydreaming of islands and alohas, the wonder of wandering, or feeding your soul with flavors of your new favorite city? Travel is roaring back to life, and we’ve got you covered with tips for planning and cost saving ideas. Before you travel So much of what makes a trip a great trip depends on what […]
Personal BankingArticles
Understanding Overdrafts: Your Guide to Managing Your Finances Responsibly
Here are some helpful tips and information to educate you about how overdrafts work, how they can occur, and how to avoid them. What is an Overdraft? An overdraft occurs when you don’t have enough money in your account to cover a transaction, but the bank chooses to pay the transaction anyway. Why Does an […]
Personal BankingArticles
Five ways to make saving easy and automatic
When it comes to savings, studies show that once we start setting money aside, chances are we’ll leave it there. The hard part is getting started. So how can we get ourselves to save in the first place? Automate! By having money set aside automatically, we eliminate having to make the “choice” to save it. […]
Connect With Us
Learn more about Webster products, services and the communities we serve.
We’d love your feedback
×