What is a good Debt to Income ratio which will not cause a hit on my rates? What is ideal?

I would say you do not want a debt ratio over 41% on the back-end.

Hi Saul,In todays mortgage market the maximum DTI is determined by computer programs called Automated Underwriting Engines which are typically referred to as AU systems. Unless you are working with a lender that has overlays on top of Fannie and Freddie guidelines your DTI should not affect your rate. If you are working with a bank that is telling you your rate will be higher because of your DTI I would strongly suggest that you work with a local broker that has access to lenders that do not charge you more for higher DTI. I see DTI approved as high as 54.99% on conventional loans and 57.99% on FHA loans on a pretty consistent basis, I have heard of loans being approved at higher DTI but have not personally seen one approved. Keep in mind if you are doing a refinance DTI can be exceeded if you are doing an FHA streamline, Relief Refi, or other special government program. Have a great day, Corey corey_seitz@excelfg.comwww.bestcoloradomortgage.com

A good Debt-to-Income Ratio to have, would be less than 50% DTI and that is pushing it. There are times where the DU will accept up to 60% DTI, with compensating factors. The DU, is an underwrinting system that all loan officers submit your file to. The DU is your guide. The DTI does not have a bearing on your rates, per se, it has a bearing on being able to qualify or not for the loan, in general. You can exlude debt that you might be paying off real soon from the DTI calculation. Any more questions please link on my link and email me. Hope this helps. RC

The major hits are for FICO, Loan Amount, Property type, Occupancy Type, Cash-out and Loan to Value. ... Assuming you're speaking of a Fannie / Freddie, FHA or VA loan. .... DTI is used for qualification purposes. ....Your main concern should be more education about loans and seeking someone that will give you the service you deserve. ... Happy funding, Rudi