Does my current mortgage count against my DTI when I refinance?

When you refinance, it's the new payment that is used to determine your DTI.. Your DTI with the above example is 27%.. Ideal DTI is 43% or lower.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Your DTI is as follows: Housing DTI ($1000/$5500)=18% Your total DTI ($1000+$500/$5500)= 27%. This is how it's calculated.

No your current payment does not, the new payment will, Using the numbers you have given, you will have no issue to refi. If I can help you in anyway. www HOMEMORTGAGEXPERT.com 855 411 LEND

At 27% DTI, your debt ratio is excellent. If your new loan has lower payments, your total DTI will be lower.

Your new payment will be what is used to calculate your DTI not your current one.

Hello again. Your total debt ratio is considered with the new housing expense for principal, interest, taxes and insurance, plus any mortgage insurance and any HOA fees you are required to pay. You would then add any other debts that would show on your credit report like credit cards (revolving loans), installment loans, lines of credit, car notes, other mortgages and then any alminoy child support or separate maintenance you are required to pay. There may be other items I am missing here, but this paints a good picture of what to expect when a lender reviews your debt to income ratio. They will take the total of your debts and divide them by the income to arrive at your total or back end ratio. Some of the other calculations you see with only the housing debt divided by income are known as a housing or front end ratio. If I can be of further assistance please feel free to utilize my knowledge. I am at your disposal: Brad Cahoone - 972-724-3222 ext.227 - bcahoone@globalhomefinance.com - http://globalhomefinance.com

I think by now you have your answer. Your current mortgage payment is replaced with the new payment from the refinance and DTI is based on this new payment. The current payment (on the loan being paid off) will not be included.

The old loan is being paid off... so no. We calculate the new loan payment combined with any other debt, like car loans, credit cards, etc. Your debt ratio is 27%