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What is a DTI ratio lenders are looking at for refinancing a jumbo loan?

We took out a HELOC to complete a remodel which was completed in 2008.  We also have 1st mortgage at 5.625% (which we've already paid 6 years into.)  Also have a HELOC with Chase (prime-.5: now it's at 2.75%) with a fixed rate option.  Being told that we are borderline candidate for refi probably due to additional balance on HELOC.  We still have plenty of equity in the home even now.  Thinking my only option for now is keeping a tab on the Chase fixed rate option to go down some.  Any thoughts here?
  • May 17 2009 - San Carlos
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Answers (6)

Usually around 46-49% dti
  • November 01 2013
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iluvtheplanet, great decision.  
  • December 28 2010
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Thank you everyone.  I ended up waiting 'til fall of 2010 and refinancing just my first mortgage with HSBC and got a conventional 30 year fixed as I was able to pay the balance down to conventional loan limit.  Went from 5.625% to 4.25% which has made a big difference.  Still just watching the fixed rate option on Chase and keeping my super low rates for now.
  • December 28 2010
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Are you borderline when trying to payoff both liens into 1 or just refinancing the 1st? If the fixed rate option from Chase is less than 7%, I would take it now since it is unlikely it will go any lower. You may get more information if you list the balances of both loans, your estimate of value, your credit score, and what county/state you live in. Debt ratios are different form 1 lender to the next as I have 1 that requires 38 dti and 12 months reserves and another at 45% and 2 months reserves. Those are both Portfolio lenders and Super Conforming will be different from that. 
  • May 18 2009
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SanCarlos3236

Speak with a few other lenders.  You might try to search out a local broker here on Zillow as well.

There are many variables to your questions, and before giving a truthful and complete answer anyone on here would need more info, ie credit scores, income, total debts and payments, etc.

Good luck.
  • May 18 2009
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Chase is just going back into wholesale. I'm not familiar with that product.

Rule of thumb for max DTI 45% Purchase to 50% Refinance with Portfolio Lenders. 38% to 45% with Fannie / Freddie but I see others stating they have received approvals at 60%.

Some Portfolio Lenders will allow you to pay off debt from refinance proceeds to qualify, with no extra fee. Loan to Value must not exceed 75%. .... Best wishes, Rudi
  • May 18 2009
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