Question:

Are No Ratio loan rates lower than the No Income No Asset loan?

Answer:

No Ratio loan rates could be lower than NINA rates for the simple reason that a No Ratio loan is a Low Doc loan while the No Income No Asset loans are No Doc loans. As a rule of thumb, the more information you provide to the lender, the risk is reduced and mortgage loan rates would drop.

However, with a No Ratio loan the borrower is expected to show assets on the side and they will be verified - whether it be stocks and bonds, land, investment properties, or inheritance.

In comparison, a No Income No Asset mortgage allows the borrower to retain maximum level of privacy and carries the highest risk for the lender therefore NINA loans would normally carry the highest rates. However, if the borrower is comfortable talking about their income, assets and occupation, the lender might feel confident about the borrower's capability of repaying and reduce the rates. In that sense, No Ratio and No Income No Asset mortgage loans can have similar rates and are in essence very much alike.

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Common misspellings: mortage and morgage