For example, if the total obligations of the borrower is $ 1,400 ($ 1,000 for housing expenses and $ 400
for other credit obligations), the debt ratio would be 35 % ($ 1,400 / $ 4,000 = 35 %).
For example, if the total obligations of the borrower is $ 1,400 ($ 1,000 for housing expenses and $ 400
for other credit obligations), the debt ratio would be 35 % ($ 1,400 / $ 4,000 = 35 %).
Know your DTI: Add the minimum monthly payments on your credit cards, car loans, student loans and
other credit obligations to your estimated mortgage payment to get your total debt figure.
In fact, if you keep all of
your other credit obligations in good standing, your FICO score can begin to rebound in as little as 2 years... a foreclosure is a single negative item, and if you keep this item isolated, it will be much less damaging to your FICO score.
If you have credit cards that are charged past 30 % of the total available credit amount, pay those down as soon as possible (but don't ignore
any other credit obligations you may have).
Moving from one range to the next could save or cost you thousands next time you want to apply for a home loan, car loan, student loan or
other credit obligations.
Key data reviewed here include your percentage of on - time payments for your loans or
other credit obligations.