Minimum payment to calculate DTI?

[joshall]

I was wondering during calculation of back end DTI, how will lender determine the mininum payment for all credit cards, auto loan and other debts?

Do they look at the credit report showing mininum payment for each credit card and loan?

Is that even accurate?

Thanks!

[StartingOver10]

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@joshall wrote:

I was wondering during calculation of back end DTI, how will lender determine the mininum payment for all credit cards, auto loan and other debts?

Do they look at the credit report showing mininum payment for each credit card and loan?

Is that even accurate?

Thanks!

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^^^Yes, they calculate using the min payment due shown on your credit report.  That amount is reported by the lenders so yes, that is accurate. 

[JayTee1]

I'd like to verify something as long as this came up.  If I have 15 credit card accounts with $0 balances, no minimum payments on those are used, or are they?

[Anonymous]

I dropped off credit summary with a few lenders last month and based on what I can figure the cards that have zero or negative balance don't hurt you. However, even $15 balance will show as a $15 monthly payment.

[joshall]

I have a few credit cards that offers 0% APR until December this year.  I have balances on them, but the minimum payment is shown as $0 on my 3B report - though my mininum payment is really around $50 for all of them. 

Is this normal? 

Will lender see $0 instead?

[Revelate]

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@joshall wrote:

I have a few credit cards that offers 0% APR until December this year.  I have balances on them, but the minimum payment is shown as $0 on my 3B report - though my mininum payment is really around $50 for all of them. 

Is this normal? 

Will lender see $0 instead?

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My guess is they will probably impute some payment for DTI purposes.  But they may not, credit card payments likely shouldn't make or break one's DTI calculation these days.

[joshall]

That's interesting, Revelate!

Unfortunately, it is going to screw up my back end DTI in my case!  My lender is strictly staying at 45% (for me at $4,000/ month), so I am just about $300 more than 45% (ie. at 49%, for one auto loan and credit card bills).  What do you think?

[Revelate]

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@joshall wrote:

That's interesting, Revelate!

Unfortunately, it is going to screw up my back end DTI in my case!  My lender is strictly staying at 45% (for me at $4,000/ month), so I am just about $300 more than 45% (ie. at 49%, for one auto loan and credit card bills).  What do you think?

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Roll the dice with the lender, otherwise start paying stuff off to clear DTI; snowball method on the CC's in this case unless you can kick the auto loan to the curb.