Say they have solid credit scores, good jobs, but have a debt-to-income ratio
of 49 percent.
Mortgage lenders look at the debt-to-income ratio
all the time.
When Renee Taylor (not her real name) of Fayetteville, North Carolina, and her husband were shopping for a home 10 years ago, a mortgage officer at the now-defunct Home Federal Savings & Loan Bank suggested Taylor voluntarily give up her 1985 Nissan Sentra to lower her debt-to-income ratio
Consolidation can help people with their debt-to-income ratio
if they need to go under the scrutiny of any kind of lending institution," he says.
And, my debt-to-income ratio
is higher than those profiled, particularly since I am just starting down the road to financial health and well-being at 28 years old.
Before you co-sign for anyone, insist that they calculate their debt-to-income ratio
(see formula below), since it's a good indicator of whether they have debt problems.
If a borrower selects an IO to qualify for a larger loan, their debt-to-income ratio
(DTI) will rise more than that of a non-IO product after the rate reset, all else being equal,' said Suzanne Mistretta, Senior Director, Fitch Ratings.
In addition to your debt-to-income ratio
, lenders also look at your work and credit history.
counties with the lowest debt-to-income ratios
, house prices didn't fall and the fall in consumption wasn't as dramatic.
In 2002/2003 they were offering loans in targeted zip codes that allowed people with subprime credit to obtain approval with 3 percent down with ridiculously high debt-to-income ratios
, at rates given to 'a' credit borrowers.
The lending community has made strides to improve its services and products in large part by lowering credit standards and raising allowable debt-to-income ratios
These loans have even higher debt-to-income ratios
than a typical high loan-to-value mortgage and a three-year subsidy buy-down that reduces the initial interest rate as much as 1.