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Updated over 7 years ago on . Most recent reply

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452
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10
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Michael Dunn
  • Olive Branch, MS
10
Votes |
452
Posts

a $20,000 HELOC and how a Lender will interpret ??

Michael Dunn
  • Olive Branch, MS
Posted

If you have a HELOC of $20,000

When a Lender goes to look at my DTI ....... How will they look at this, as far as it being a Debt/Expense to me and them factoring it into the DTI for me getting approved for the loan ?

The minimum payment right now  ( for the next  4 and a half years  )  is  $48 a month 

So if I were to try and get a Loan for a property in the next 3 - 6 months , would they just use the $48 ( minimum payment ) that I'm paying on the HELOC as a monthly Expense ?

OR 

Would they assume I have a Higher Monthly Expense , since the HELOC is only good for the Minimum Payment for 5 years ( 4 years and 6 months left ) before the Principal Payment kicks in , which will be around $400 a month

The HELOC is for $20,000 , of which ONLY $7,000 has been used

Thank you for the help 

Most Popular Reply

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2,367
Posts
746
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Harjeet Bhatti
  • Lender
  • Glenview IL- CDLP NMLS#230554
746
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2,367
Posts
Harjeet Bhatti
  • Lender
  • Glenview IL- CDLP NMLS#230554
Replied

The lender will count full p&I payment on $20000. The reason is you have access to that much money. You can avoid it by reducing HELOC loan amount and freeze it.

  • Harjeet Bhatti
  • Loading replies...