To Heloc or not to Heloc

[Matt Groom]

Currently I'm looking into a 50000k heloc after a failed attempt at a cash out refinance. The house I purchased in 2008 has no outstanding balance and appraised at $224,000. To my disappointment I was denied a loan of $170,000 from quicken due to high debt to income ratio ( I was over excited and failed to do my due diligence) I didn't think to add in the new payment into my calculations.....oops, But with that nice lesson learned I now know what needs to be done in order to get either 50-80k on a heloc. so my question is when the lender calculates the dti on the heloc do they use the interest only payment or principle & interest.