U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 08-10-2010, 05:29 PM
 
5 posts, read 33,057 times
Reputation: 14

Advertisements

Hi,

I'm in OC, California and trying to refinance my house:

Property Value: $485,000
Loan: $380,000 (78%)
Current Payment: $70+ $450+$2042 = $2560 (insurance + prop tax + 4.875% payment)

I'm offered a 30yr fixed 4.375% (770+ credit scores) with a total of ALL fees of $1400.
New Payment: $70+ $450+$1892 = $2413 (insurance + prop tax + 4.375% payment)


Income: $5000/mth
New Debt to Income: $2413/$5000 = 48.26%

I do not have any other debt since everything else paid off (cars, credit cards...). I do have a saving account enough for 10 payments.

The loan officer told me that the DTI is too high and may be rejected by the underwriter but recommended me to go ahead and sign the paperwork. If my application got denied, I would lose my $425 for the appraisal.

Should I go on and sign the papers or it WILL be denied so it's not worth it.

Thanks.
Reply With Quote Quick reply to this message

 
Old 08-11-2010, 08:24 AM
 
Location: Plano, Texas
1,676 posts, read 6,334,056 times
Reputation: 684
Before you do that, ask your loan officer if he/she ran your loan through automated underwriting. It will let you know if you can be approved to that DTI. Most loans with DTI's over 45 are declined, but with high FICO scores, assets and lower loan to value it is possible to get approvals to 50 DTI. Before you proceed, have the loan officer send you the findings so you can see whether you can be approved with that DTI.

By the way.. i am surprised the loan officer hasnt already ran through DU(automated underwriting)
Reply With Quote Quick reply to this message
Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top