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Answers (4)
- Chad Melin, "Chad Melin"
- Contributions:113
You need to look at all your debits vs income and how many years you have left on your car loans. Get an application started with a lender and look at your different options.
Paying down your car loans by 30k you will still get hit for the full payment so your monthly debit to income won't change. You won't have to count the car payments against you if you have 6 months or less of payments.
Paying down your car loans by 30k you will still get hit for the full payment so your monthly debit to income won't change. You won't have to count the car payments against you if you have 6 months or less of payments.
- Martin Wareing, "Martin Wareing"
- Contributions:3772
Pay down your debt.. The $310,000 loan you are desiring will be $280,000 in 3 months anyway. The thing you might want to think about jsut for yourself and not for us to dissect is why are you desiring to max everything to the edge. Your are asking if you pay off this can you stretch even more and more. I am being very honest about this: There are 5-10 million stories of maxed out in America right now. Take a breath and just make sure you protect yourself. You get in this game and misfire, you will pay for it for decades. Be safe, be liquid and make a good decision. I wish you well. The simple answer is paying off consumer debt potentially increases your mortgage by more than what you paid off.. It is just math.. However a mortgage is a marathon.. 30 years... jsut keep that in mind. Lots happens in that time some good... some bad.. balance and be blessed. Good luck.
- Jeff Robertson, "Jeff405"
- Contributions:173
I am assuming that you have two auto loans? Usually auto loans are on shorter terms which accrue alot less interest than a mortgage note will. So in other words from a financial standpoint it would be better to take the lesser mortgage loan of 280k. For 30 years, at 310k with a 5% rate you will pay roughly 30k more interest than you would at 280k at the same rate. You just have to look at the numbers closely, it also changes things depending on how long you plan on staying in this house.
If paying off one of your autos is your only option for getting approved and you want to proceed with that you just need to show proof that the loan has been satisfied and they will remove it from your DTI. If you have trouble with that lender than fortunately there are other lenders around you can choose.
I hope this helps.
- Marcelo Hernandez, "pacific mortgage srv"
- Contributions:180
Normally paying down installment loans after a credit report has been run in order to increase the loan amount OR to help "qualify" for a specific loan amount is deemed unacceptable by most underwriters. Satisfying the installment loans alltogether is a different story, and you most likely will have to do it prior to closing. The alternative would be to pay them now and then wait a month or so and then re-apply for a pre-approval.
Reducing debt to income ratio vs. having a higher down payment
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