[quote=kcal09]Refinancing has become more difficult now. A debt/income ratio of less than 48% is required even with high equity. It used to be much less strict.[/quote]
48% debt to income is still extremely high. I would consider this to still be a very loose limit.
Traditional ratios of 28% DTI for housing debt and 36% DTI for ALL debt used to be the criteria thorugh the early 1990’s for conforming loans.
48% DTI is way to high for most budgets, unless of course there is difficult to document income or self employment income that “doesn’t count.”
Our household would not be able to keep to a household budget with 48% DTI. We were up around 42% DTI when we were covering two mortgages a number of years ago and that was extremely difficult.
