Posted by Mortgages on November 11, 2004 at 17:53:12:
In Reply to: several posted by Denise on July:
Many mortgage loans homeowners are refinancing their current mortgage loans to lower their interest rate and lower their monthly mortgage loan rate. The way mortgage loans are designed, you pay both principal and interest every month. As a mortgage lender, they have a responsibility to provide homeowners with a loan they can afford. This is why each program has a maximum debt ratio which must be met. Depending on the type of mortgage home loans program, the debt ratio needs to be under 65%, 50%, or 35%. This means that all of your revolving, installment, and mortgage home loan payment together cannot exceed the debt ratio guideline of your monthly income.