Posted on: 29th Apr, 2010 02:23 am
When Debt to Income ratio is calculated for loan approval, is the monthly payment for the new mortgage loan included in the calculation of this ratio?
Yes, there is front end and back end ratio. Front end is the monthly payment of your new home, taxes, insurance, the whole nine. Back end is front end plus monthly expenses that are on your credit report.
If you have a mortgage on which you're regularly making payments, then it would be included in your debt to income ratio.