HELOC ....... Falling " Just within " the margin for the 43% DTI
Good Morning
Before I call my Lender back this coming Monday, i want to make sure that I'm not wasting there time and mine
A Breakdown of the Scenario:
Primary residence has $40,000 in Equity
to get a $20,000 HELOC , I was told from the Lender that the Max DTI is 43%
Given Last 2 years of Taxes , those Two years ( 2014 and 2015 ) comes out to $40,00 ( so it " shows " $20,000 earned as the average per year for 2014 and 2015 ) ....... So about $1,650 a Month
Multiply $1,650 x .40% DTI = $715
Subtract from this a $480 a month Mortgage payment ( PITI ) + $85 in Minimum Monthly Credit Card Payments ( one if $40 minimum a month and the other one is $45 minimum monthly payment )
TOTAL = $565 ( Monthly Debts
The DTI Shows a MAX TOTAL you can Afford of $715 a month
$715 - $565 = $150
So, the Minimum Payment on the 20 Year HELOC ( at a 7.15% Interest Rate , and Paying just Interest Only for the First 10 years = a Monthly Payment of right around $120
$150 - $120 = $30 Left Over
So this Shows that I should be able to get the HELOC , as I can Afford to make the Minimum Monthly Payment on the HELOC in the amount of $115 a month
I also Have a Good Enough Credit Score to have Qualified as well..... from what the Lender told me
Is there anything I'm missing , that might stop me from qualifying from Getting this HELOC ?
Thanks Very much for any and all help