Does anyone have any experience getting a home equity loan with a high debt to income ratio? I am curious if we will be declined or just given a higher interest rate?? Home is in Florida Equity between $75-90K Wanting a loan for around $45-50K Debt to income around 60% FICO 700-720 (no lates or deliq-just high balances that I would like to pay off) Thanks for any input!
is the 60% with or without paying debt off. if you are paying it off with the home equity loan you should be fine if your final debt ratio is under 50%.
if the lender is doing the payoffs you shouldn't have a problem. your looking at a rate of about prime + 2% on the scenario you presented for a HELOC. prime is currently 5.75% (and it is variable) so your rate RIGHT NOW would be 7.75%.
Thanks all of your help. I wanted to report back and let you were right on. We got a HELOC for prime +1.75
