Posted on: 20th Jan, 2010 06:17 am
wondering if anyone knows how wells fargo is calculating debt to income ratio to honor loan modifications. does wells fargo take into account your 401-k balance? or only your income and assets?
If you are applying for the Home Affordable Modification program, your debt to income ratio should be 31%. The debt-to-income ratio is the percentage of your monthly gross income that goes toward paying debts. Thus, your income and the amount that you pay towards your debts will be considered while you apply for modification.