21% is very good you have a low debt to income ratio.Here's the deal about what percentage is considered being bad with most lenders.If a person has over 36% as their debt to income ratio then this can cause some alarm with lenders making this person alittle risky with them.No more then 36% on all credit obligations including mortgages.I have a debt to income ratio of 27% therefore i am safe because it is below the 36% mark.Some people say some lenders will allow as much as 41% debt to income ratio but i do not recommend anything over 36% just to be on the safe side.
Ok i added all my debt to get that answer..Now say if i wanted to buy a house..Does the morgage company add say what i pay now for rent and regular monthly bills like insurance and cable and all that good stuff? Looking to buy a house in 2 years and really shouldn't owe much at all on CC then.. Thanx
For me they added up credit account and loan payments. They did not include phone, utilities or rent. This was for an FHA loan. John
Depends... on how much money you can put down and what type of interest rate you want.... with 20% down and prime rate, you're looking at no more than 30% for house payments and 36% total debt load with most sources Here's some great links to additional information.... http://www.mortgage101.com/partner-scripts/1070.asp?p=mtg101 http://nt.mortgage101.com/partner-scripts/1177.asp?p=mtg101&pw=600 http://nt.mortgage101.com/partner-scripts/1141.asp?p=mtg101&pw=600 http://www.amo-mortgage.com/library/creditrating/thecreditguidescore.htm http://nt.mortgage101.com/partner-scripts/1075.asp?p=mtg101 http://nt.mortgage101.com/partner-scripts/1005.asp?p=mtg101
I heard that FHA loans are good to have lowering intrest and monthly payments. Is this true? After i pay off my credit card debt i would be able to make monthly payments of about $700 My annual pay is 37k...In my area i can get a nice home for 150k-200k and be happy..As of now my Credit Expert score is 647 and wifes is 665
