Debt Ratio

Comments(10)

• 
  myfrogger11th May, 2004

  Most lenders do not want your PITI (princiapl, interest, tax, and insurance) payment per month to be more than 35% of your total montly income. That percentage varies among lenders and their individual loan programs

• 
  tinman175511th May, 2004

  Add up all of your liabilities.
  Find your gross pay a month
  EX:
  
  Gross pay $5000.00 a month
  All payments= 1254
  DR=25.08%
  
  
  Lori
  [addsig]

• 
  ddemott12th May, 2004

  So does that include your phone bill and your electric bill, or are you talking you loans only?
  Quote:
  On 2004-05-11 18:44, tinman1755 wrote:
  Add up all of your liabilities.
  Find your gross pay a month
  EX:
  
  Gross pay $5000.00 a month
  All payments= 1254
  DR=25.08%
  
  
  Lori

• 
  vasiliy13th May, 2004

  Your deb ratio will include everything that shows up on your credit report plus the PITI for the house or rent amount.
  
  I have never seen electric bills be part of your debt ratio calculation.
  
  Hope this helps.
  Vasiliy

• 
  tinman175513th May, 2004

  Debt ratio includes:
  revolving
  30 day accounts
  installment loans
  credit lines
  mortgages
  taxes & insurance (if homeowner)
  rent payment
  
  Lori
  [addsig]

• 
  j_owley3rd July, 2004

  that would also include alimony

• 
  GregTanner6th July, 2004

  Some lenders will allow up to 50% DTI. This is mostly in the subprime industry which is what I specialize in.

• 
  cjmazur6th July, 2004

  there's the front end, which include only housing debt, and the backend which include all debt.
  
  so a lender my have a program that's 33/45.
  
  33% of income spend on housing, 45% total in debt.

• 
  gldstwmn7th July, 2004

  Quote:
  On 2004-07-06 01:28, GregTanner wrote:
  Some lenders will allow up to 50% DTI. This is mostly in the subprime industry which is what I specialize in.
  
  
  Long Beach will go to 55 if the ltv is low enough.

• 
  watchbillw8th July, 2004

  There is front end and back end hence the 33/45
  front end is without piti