Use HELOC to pay down high monthly debt obligations to qualify for high loan?

[Brandon Borah]

I recently applied for a HELOC, which I was advised by my mortgage lender would be used against me in my debt-income ratio. With a 3.5% rate and $30K HELOC, I will be looking at a $100 a month if the entire HELOC is drawn on. I have a 8% student loan in the amount of $12K with a monthly debt obligation of $112 a month.

My question is since the mortgage company already includes the HELOC against me as they assume it will be drawn upon, would it make sense to pay off the high interest student loan and pay the now approximately $40 month on the line as opposed to $112 and would this lower my debt-to-income in regards to qualifying for a loan as my month debt obligations have now decreased?

Any information is appreciated.

Brandon