How do Helocs affect DTI?

[Daniel B.]

Hi,

How does a Heloc affect my DTI? Specifically, I have had lenders ask what the full draw amount is. So if I have a Heloc for $100,000 max but I have only drawn $50,000 on it, are they required to calculate my payment based on the full draw..$100,000 or my actually payment based on a balance of $50,000?

Also, do they use the current interest rate or do they need to assume that the interest rate will increase and use a debt payment based on a higher interest rate? I previously had a ARM and I think lenders had to make sure I qualified if the interest rose, not just at the starter rate and I wasn't sure if they did something similar for HELOCS.

Thanks in advance.