@cj1132 wrote:
I am considering a cash out refinance and might pay off a couple credit cards at closing from the cash out. I will retain 30-35% equity so I'll be over the 20%.
I am a little confused on how these credit cards would be treated in regards to DTI. I've seen some posts stating that they minimum payments would still count in debt to income and may have to be closed. If I'm reading the fannie mae selling guide correctly, it states that they don't have to be counted in dti and don't have to be closed if paid off prior to or at closing. Am I interpreting this correctly?
Correct, that was from the Selling Guide released in May. Some lenders may have overlays, but many will go straight from the Selling Guide.
