Time to refinance :-)

[(former)FormerSanDiegan]

[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.

[UCGal]

I’m with FSD on this. I remember my first mortgage the DTI max was low 30’s – this was 1991.

Think about it, DTI is based on gross income. We all complain that taxes are too high – but we all have payroll deductions that take a chunk of our gross pay. Factor in any 401k contributions – even less take home… then allow for 48% of your gross to go to debt (including housing) – you don’t have enough left over for food, clothes, child care, etc…

48% is WAY too high. You’d have to give up retirement savings and basic necessities like gas for your car.

[UCGal]

I’m with FSD on this. I remember my first mortgage the DTI max was low 30’s – this was 1991.

Think about it, DTI is based on gross income. We all complain that taxes are too high – but we all have payroll deductions that take a chunk of our gross pay. Factor in any 401k contributions – even less take home… then allow for 48% of your gross to go to debt (including housing) – you don’t have enough left over for food, clothes, child care, etc…

48% is WAY too high. You’d have to give up retirement savings and basic necessities like gas for your car.

[UCGal]

I’m with FSD on this. I remember my first mortgage the DTI max was low 30’s – this was 1991.

Think about it, DTI is based on gross income. We all complain that taxes are too high – but we all have payroll deductions that take a chunk of our gross pay. Factor in any 401k contributions – even less take home… then allow for 48% of your gross to go to debt (including housing) – you don’t have enough left over for food, clothes, child care, etc…

48% is WAY too high. You’d have to give up retirement savings and basic necessities like gas for your car.

[UCGal]

I’m with FSD on this. I remember my first mortgage the DTI max was low 30’s – this was 1991.

Think about it, DTI is based on gross income. We all complain that taxes are too high – but we all have payroll deductions that take a chunk of our gross pay. Factor in any 401k contributions – even less take home… then allow for 48% of your gross to go to debt (including housing) – you don’t have enough left over for food, clothes, child care, etc…

48% is WAY too high. You’d have to give up retirement savings and basic necessities like gas for your car.

[UCGal]

I’m with FSD on this. I remember my first mortgage the DTI max was low 30’s – this was 1991.

Think about it, DTI is based on gross income. We all complain that taxes are too high – but we all have payroll deductions that take a chunk of our gross pay. Factor in any 401k contributions – even less take home… then allow for 48% of your gross to go to debt (including housing) – you don’t have enough left over for food, clothes, child care, etc…

48% is WAY too high. You’d have to give up retirement savings and basic necessities like gas for your car.

[CA renter]

[quote=UCGal]I’m with FSD on this. I remember my first mortgage the DTI max was low 30’s – this was 1991.

Think about it, DTI is based on gross income. We all complain that taxes are too high – but we all have payroll deductions that take a chunk of our gross pay. Factor in any 401k contributions – even less take home… then allow for 48% of your gross to go to debt (including housing) – you don’t have enough left over for food, clothes, child care, etc…

48% is WAY too high. You’d have to give up retirement savings and basic necessities like gas for your car.[/quote]

Absolutely right, UCGal…unless the borrower is **filthy rich** the 48% DTI limit (even if it was 48% of net income) is way, way, way too high.

[CA renter]

[quote=UCGal]I’m with FSD on this. I remember my first mortgage the DTI max was low 30’s – this was 1991.

Think about it, DTI is based on gross income. We all complain that taxes are too high – but we all have payroll deductions that take a chunk of our gross pay. Factor in any 401k contributions – even less take home… then allow for 48% of your gross to go to debt (including housing) – you don’t have enough left over for food, clothes, child care, etc…

48% is WAY too high. You’d have to give up retirement savings and basic necessities like gas for your car.[/quote]

Absolutely right, UCGal…unless the borrower is **filthy rich** the 48% DTI limit (even if it was 48% of net income) is way, way, way too high.

[CA renter]

[quote=UCGal]I’m with FSD on this. I remember my first mortgage the DTI max was low 30’s – this was 1991.

Think about it, DTI is based on gross income. We all complain that taxes are too high – but we all have payroll deductions that take a chunk of our gross pay. Factor in any 401k contributions – even less take home… then allow for 48% of your gross to go to debt (including housing) – you don’t have enough left over for food, clothes, child care, etc…

48% is WAY too high. You’d have to give up retirement savings and basic necessities like gas for your car.[/quote]

Absolutely right, UCGal…unless the borrower is **filthy rich** the 48% DTI limit (even if it was 48% of net income) is way, way, way too high.

[CA renter]

[quote=UCGal]I’m with FSD on this. I remember my first mortgage the DTI max was low 30’s – this was 1991.

Think about it, DTI is based on gross income. We all complain that taxes are too high – but we all have payroll deductions that take a chunk of our gross pay. Factor in any 401k contributions – even less take home… then allow for 48% of your gross to go to debt (including housing) – you don’t have enough left over for food, clothes, child care, etc…

48% is WAY too high. You’d have to give up retirement savings and basic necessities like gas for your car.[/quote]

Absolutely right, UCGal…unless the borrower is **filthy rich** the 48% DTI limit (even if it was 48% of net income) is way, way, way too high.

[CA renter]

[quote=UCGal]I’m with FSD on this. I remember my first mortgage the DTI max was low 30’s – this was 1991.

Think about it, DTI is based on gross income. We all complain that taxes are too high – but we all have payroll deductions that take a chunk of our gross pay. Factor in any 401k contributions – even less take home… then allow for 48% of your gross to go to debt (including housing) – you don’t have enough left over for food, clothes, child care, etc…

48% is WAY too high. You’d have to give up retirement savings and basic necessities like gas for your car.[/quote]

Absolutely right, UCGal…unless the borrower is **filthy rich** the 48% DTI limit (even if it was 48% of net income) is way, way, way too high.

[sunny88]

[quote=CA renter][quote=bearishgurl][quote=HLS]. . . Many people just don’t qualify for a loan at any interest rate today.[/quote]

HLS, this is so true. I have an 804 FICO score and never had any missed (or late) mortgage payments in my entire life. However, I couldn’t even buy my own property back today (purch. 9 yrs. ago) as I would be NOW be labeled to have “insufficient income” to qualify – LOL![/quote]

BG,

I think many, many people are in the same situation (couldn’t buy their own homes back at today’s prices). During the peak, about 80% of homeowners couldn’t buy back their own homes at those prices, yet they expect some foolish buyer to somehow manage to do it! That’s exactly why some of us are so bearish — prices are still too high in many areas.[/quote]

I agree, most new homes and resales are still way overpriced. I don’t think that we should pay such a high premium for living in SoCal anymore as the economy here is so bad now.

[sunny88]

[quote=CA renter][quote=bearishgurl][quote=HLS]. . . Many people just don’t qualify for a loan at any interest rate today.[/quote]

HLS, this is so true. I have an 804 FICO score and never had any missed (or late) mortgage payments in my entire life. However, I couldn’t even buy my own property back today (purch. 9 yrs. ago) as I would be NOW be labeled to have “insufficient income” to qualify – LOL![/quote]

BG,

I think many, many people are in the same situation (couldn’t buy their own homes back at today’s prices). During the peak, about 80% of homeowners couldn’t buy back their own homes at those prices, yet they expect some foolish buyer to somehow manage to do it! That’s exactly why some of us are so bearish — prices are still too high in many areas.[/quote]

I agree, most new homes and resales are still way overpriced. I don’t think that we should pay such a high premium for living in SoCal anymore as the economy here is so bad now.

[sunny88]

[quote=CA renter][quote=bearishgurl][quote=HLS]. . . Many people just don’t qualify for a loan at any interest rate today.[/quote]

HLS, this is so true. I have an 804 FICO score and never had any missed (or late) mortgage payments in my entire life. However, I couldn’t even buy my own property back today (purch. 9 yrs. ago) as I would be NOW be labeled to have “insufficient income” to qualify – LOL![/quote]

BG,

I think many, many people are in the same situation (couldn’t buy their own homes back at today’s prices). During the peak, about 80% of homeowners couldn’t buy back their own homes at those prices, yet they expect some foolish buyer to somehow manage to do it! That’s exactly why some of us are so bearish — prices are still too high in many areas.[/quote]

I agree, most new homes and resales are still way overpriced. I don’t think that we should pay such a high premium for living in SoCal anymore as the economy here is so bad now.

[sunny88]

[quote=CA renter][quote=bearishgurl][quote=HLS]. . . Many people just don’t qualify for a loan at any interest rate today.[/quote]

HLS, this is so true. I have an 804 FICO score and never had any missed (or late) mortgage payments in my entire life. However, I couldn’t even buy my own property back today (purch. 9 yrs. ago) as I would be NOW be labeled to have “insufficient income” to qualify – LOL![/quote]

BG,

I think many, many people are in the same situation (couldn’t buy their own homes back at today’s prices). During the peak, about 80% of homeowners couldn’t buy back their own homes at those prices, yet they expect some foolish buyer to somehow manage to do it! That’s exactly why some of us are so bearish — prices are still too high in many areas.[/quote]

I agree, most new homes and resales are still way overpriced. I don’t think that we should pay such a high premium for living in SoCal anymore as the economy here is so bad now.

[Author]

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