Posted on: 08th Oct, 2010 08:27 am
i am a working female who plans to refinance my home if approved.
my debt to income ratio is high, so without additional income, i will not qualify.
my husband cannot be on the loan because of poor credit. however, he currently pays for our current mortgage which is over $1700 a month.
is it possible for me to use this money each month to apply toward a mortgage payment if his name is not on the loan?i thought about opening a bank account for myself and have him deposit this money each month if it is legal. i also have a 401k plan for about $88,000 which i can use to pay down some debt. i earn about 50,000 per year and need to borrow about $240,000.
also, should i attempt to pay down my debt or put additonal money on paying down the loan amount? if i'm approved, i want my interest rate to be as low as possible.
my debt to income ratio is high, so without additional income, i will not qualify.
my husband cannot be on the loan because of poor credit. however, he currently pays for our current mortgage which is over $1700 a month.
is it possible for me to use this money each month to apply toward a mortgage payment if his name is not on the loan?i thought about opening a bank account for myself and have him deposit this money each month if it is legal. i also have a 401k plan for about $88,000 which i can use to pay down some debt. i earn about 50,000 per year and need to borrow about $240,000.
also, should i attempt to pay down my debt or put additonal money on paying down the loan amount? if i'm approved, i want my interest rate to be as low as possible.
Hi gaylehenson,
You can apply the money towards the mortgage payment. However, you won't be able to claim that as your income. As far as your 401k is concerned, it won't be a good option to cash in the amount as you'll be liable for 10% penalty. You can try to pay off as much as debt possible. This will help you in reducing your debt to income ratio as well.
You can apply the money towards the mortgage payment. However, you won't be able to claim that as your income. As far as your 401k is concerned, it won't be a good option to cash in the amount as you'll be liable for 10% penalty. You can try to pay off as much as debt possible. This will help you in reducing your debt to income ratio as well.
What are you current debt to income ratios?
