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Answers (19)
- dsluce
- Contributions:7
I don't understand why they would be making cuts? To what? The value of my house?..... They do keep asking about our rental property which we gave them all info on right at the beginning. After paying all our bills on the property ie..mrtg,taxes,homeowners,water/sewer...we are still making money on it. It is a 2 family fully occupied. We bought it as a retirement investment.
- Kevin Toups, "TabascoKajun"
- Contributions:110
Also, your DTI should be given on your loan disclouser packet. It should be arriving anywhere from 3-5 days after the application stage. They are preliminary numbers, but should give you a good idea of your DTI at the time of application.
- Kevin Toups, "TabascoKajun"
- Contributions:110
Is there anything else on credit they are considering? Is there child support on credit? Are they using all of your income, like commision or OT? Are they evaluating your appraised value vs. their internal appraisal guidelines and making cuts?
These are things that will stall or get a loan going again. Find out specifically what the potential problems may be and how they are being addressed. Some lenders see a "problem" file and give up.
These are things that will stall or get a loan going again. Find out specifically what the potential problems may be and how they are being addressed. Some lenders see a "problem" file and give up.
- dsluce
- Contributions:7
We aren't having a problem with the appraisal we paid our bank the fee then waited it took the 2 months to return the fee with an apology saying we were turned down. This is very maddening. We feel if we were in default and about to lose our home we might get help. This we are not willing to do but know of others that had a hard time paying for their home and they were helped. We are not having a hard time but just would like to consolidate and lower our payment cannot do it. The question is "Why Not?"
- Kenton Becker, "Kenton Becker"
- Contributions:50
Thats a tough one without looking at your entire file. Sounds like everything makes sense. Maybe you have been going to the wrong lenders ;)
Let me know if you would like some help looking at your situation.
Let me know if you would like some help looking at your situation.
- dfors2
- Contributions:175
Sorry to hear of your troubles. I have been getting nowhere with a refi on my home as well. I have FICO in high 700s low 800s DTI of 20 or so. The problem is noone seems to be willing to get an appraisal. I called my current lender and offered to prepay a good bit but they just don't seem interested. Banks must essentially be insolvent and the government won't admit it.
- Andrew Adams, "203K Specialist"
- Contributions:9349
I can't answer why I just know that rarely these days does a 20 year rate differ from a 30 year rate. The price break comes in at 15 years and is not all that substantial.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Depending on your equity position, many Portfolio Lenders will let you pay off debt from cashout funds to qualify by obtaining needed DTI% ... Best wishes, Rudi.
PS; For one, I appreciate when a person lists where they are located.
PS; For one, I appreciate when a person lists where they are located.
- dsluce
- Contributions:7
No one has ever told us what our dti is and i am afraid i never thought to ask but i will now thank you for that advice yeagermike.
why wouldn't we get a break on a 20 year term. i thought the rate would be lower on a shorter term, andrew adams.
Whatever lender or broker you go to you should be told upfront how your loan is being structured, one reason is it doesn't waste your time. There are still lenders out there that will except 45% DTI and will manually underwrite your loan, of course cash out refinance there are different guidelines and today are much more strict. Its a case by case basis. And it should be based off your new mortgage payment, not your current. There should be a reason and you should ask how they are calculating your DTI.
Best of luck.
Best of luck.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Since you do not get a break for a 20 year rate over a 30 year rate go with a 30 year term and pay it off on a 20 year term. Unless you need MI you should be able to get approved with that ratio.
- Michael Yaeger, "yaegermike"
- Contributions:754
dsluce, what is your lender saying the DTI is? if they are denying you based on Debt Ratio they should be able to tell you what they are coming up with.
- dsluce
- Contributions:7
our dti is .4430. is that too close to the .45? it is not that we do not have the money to pay these but would like to consolidate our mrtg w/ equity and maybe pay off 1 vehicle. we owe 97,000 mrtg and 43,000 equity. would like 160,000 for 20 years. that should save us about 400 per month.
- dsluce
- Contributions:7
If I did the calculations right it is .4430. Is that okay? Or ,is it too close to the .45. We are trying to consolidate our mortage and our home equity plus maybe pay off one of our vehicles. we owe 97 thou mort. and 43 thou equity are looking to refi at 150,000 for 20 years. this would definately free up more cash for us by about 400.00 per month.
- Jeffrey Chalmers
- Contributions:25
In order to reduce unnecessary risk, today's lenders have revised their lending guidelines to an allowable 40 DTI. Although I'd need more info to review your case, it sounds like if you have the necessary equity to payoff your debt, you should do it. Yet, PMI companies will not insure loans with LTV over 85%. Yes, the market has changed and for those with excessive debt may have some concerns. Don't give up.
- TIM DAY, "TLD Financial"
- Contributions:7
Add up all your bill payments for the month
then divide by your monthly gross income.
The total should be .45 or less.
then divide by your monthly gross income.
The total should be .45 or less.
- Michael Yaeger, "yaegermike"
- Contributions:754
The guidelines used to issue you a new loan are based on your current financial scenario. The lender is going to give you money. They want to be sure that you are going to able to sustain the payments for the new loan for the forseable future. Add your total monthly debt payments that would show up on your credit report and then divide by your total pretax monthly income. What is that number?
- dsluce
- Contributions:7
I don't understand what debt to to income ratio has to do with the refi. We have plenty of income to pay all of our bills and great credit so why is our debt getting in the way?
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
What is our debt to income ratio? Before the refi and if you get the refi.
Why do we keep getting turned down for refinancing our home?
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