will DTI or down payment affect my mortgage rate more

For most lending products, DTI does not affect your interest rates.. Credit scores, Loan to Value, and property type will have the biggest impact on what your interest rate would be.. So paying off your debt, although is a good idea, it' wont help improve your qualifying interest rate.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Rates for borrowing money are at an all time low still. That being said having a lower DTI will not help you in any way when applying for a mortgage, all that matters is that you are at or below the program guidelines. What is more important to you a lower mortgage payment or less monthly other debt payment. What are the interest rates on the other debt you have compared to the rate your mortgage will be? Remember the interest you pay on your mortgage is deductible on your taxes, other interest for other debt most likely is not.

3/17/2014In my opinion - if your debt/ income ratio is that low- I would definitely advise / encourage you to consider putting the cash towards at least a 10% down payment .....this might allow you to paydown some additional debt as well ....getting the loan to value ( ltv ) to 90% makes make more programs available as well as improving rate/ fee options for the new loan What is the DTI looking like if you don't pay it all off ?Thanks and let me know if I can assist more ?Dave Skow WA MLO #278613 Eagle Home Mortgagew 206 714 9745 daveskow@eaglehm.com www.eaglehomemortgage.com/daveskow

Well if you're looking at the big picture, paying down debt will surely increase your credit rating. Which initially means you could get qualified for better interest rates. If your Debt to Income Ratio is at 10%, then you are in good shape. In this case..I would pay off any outstanding debt. Keep in mind that your initial down payment also determines pricing and LTV. There are a series of questions that we could ask to help give your situation a better outcome. Questions? Answers are free!! I'll be glad to help. Robert Hardy (First Rate Mortgage) We're local.. Renton, WA 425.988.2510 NMLS#1069254

The general rule is to apply your money to the debt with the highest rate first...

Hi Graci, The details will depend on type of financing that you are applying for as well as the nature of the debt that you are paying down, as well as your plans going forward for the home. I advise people on these issues all the time, but I would be uncomfortable doing so without understanding the entire picture. There will not just be a "pat" answer to this that would apply to all situations. I'm happy to help with the financing or just give you advice. If you need more information, or a competing rate quote call, email or use my live support button to discuss or get in touch with me. Web Address for live chat or quote is: http://www.loansfromrob.com/quote/ Email is robertlh66@verizon.net and direct phone is 240-752-7549. Good Luck -- Rob Hanson

Debt ratios generally need to remain below 43% now for total combined housing and consumer debts to be what is considered a "Qualified Mortgage". There are exceptions to this, but most often, underwriters are looking for this range when approving loans. With automated underwriting software, these ratios can be exceeded. It sounds like as long as you're ok with the payment and your debt ratios are lower, you could go with a lower down payment. Every loan is different and every person's goals are different. For instance, in the outlying areas of Aberdeen, the USDA Guaranteed Rural Housing Progam is available, which has zero down payment required and much lower payments compared to FHA or Conventional loans. The only loan that beats it would maybe be the VA loans. Other options are Down Payment Assistance programs that help you offset more of a down payment or pays closing costs. There are many options available. Mortgage interest is currently tax deductible, whereas consumer debt like auto loans or credit cards generally are not. A WORD OF CAUTION: Don't just automatically think that paying off and closing out your debts will help your credit. We've seen people close all of their accounts, thinking it would improve things, and it actually hurt them because they had no open tradelines reporting. Consult with a loan officer first. To recap, if you're going with a conventional loan, then putting more money down will reduce your monthly mortgage payment and potentially your interest rates, which will affect you over time. I'd recommend talking to a loan officer to get more of the big picture though.

4/10/2014Graci - hi there ...I am following up to see if you still need any assistance with the loan questions you asked last month ?thanks and all the best .Dave Skow WA MLO #278613 Eagle Home Mortgagew 206 714 9745 daveskow@eaglehm.com