Debt to income ratio?

azhomeobsessedJune 9, 2006

I'm just curious if anyone has current info re: debt to income ratio guidelines.

Everything I can find to read says that lenders use a 28/36, or up to 41 for the last #, but it seems to me that with a lot of the home prices out there as high as they are, plus all of the high mortgages in the mortgage threads here, that lenders must not be adhering to those guidelines anymore.

What are lenders looking for these days?

I have a personal interest in this because our debt to income ratio is going up to the upper edges of the guidelines soon (with no debt except for mortgage and vehicle payments), which makes me worry about our ability to finance a swimming pool/landscaping package for our backyard.

Input? Advice?

Thanks in advance!

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celticmoon

Sure does seem from posts here that some people are carrying large mortgages. They perhaps have very high incomes to match?

I posted this link once before but I'll repeat in case you missed it. Good article with thoughts about those very ratios. It actually makes the case they may be too high given rising health and fuel costs and the need to pay for one's own likely long retirement (no pensions).

Bottom line is only you know how much you should take on.

Here is a link that might be useful: article on mortgages

    Bookmark   June 11, 2006 at 10:31PM
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