topic Re: Calculating DTI in General Credit Topics

Calculating DTI

erinbean28 — Mon, 02 May 2016 19:51:35 GMT

Hello,

I am curious - if my credit cards are all at a zero balance (and have been for 6 months) do I need to include their minimum monthly payment when calculating my DTI?

Thank you in advance!

Erin

Re: Calculating DTI

Revelate — Mon, 02 May 2016 21:05:06 GMT

@erinbean28 wrote:
Hello,

I am curious - if my credit cards are all at a zero balance (and have been for 6 months) do I need to include their minimum monthly payment when calculating my DTI?

Thank you in advance!

Erin

Nope!

Re: Calculating DTI

RobertEG — Mon, 02 May 2016 21:06:08 GMT

If the balance is $0, would the minimum monthly payment not also be $0?

Re: Calculating DTI

Revelate — Mon, 02 May 2016 21:12:11 GMT

@RobertEG wrote:
If the balance is $0, would the minimum monthly payment not also be $0?

Typically that's what's reflected but some lenders still report a default minimum payment on the credit report; $0 balance CC isn't counted for mortgage DTI purposes from any lender I'm aware of from reports here at least, and Fannie/Freddie guidelines apparently agree though I haven't looked explicitly for that point.

Re: Calculating DTI

RonM21 — Mon, 02 May 2016 21:30:53 GMT

Have your cards all been reporting a 0% balance for that long?

Re: Calculating DTI

Peteyglad — Tue, 03 May 2016 01:05:19 GMT

When I got my mortgage last October all that was counted was minimum payments on cards that reported a balance when they pulled my credit. I have heard of banks using a $25 payment as a minimum on all cards in your portfolio, but that was not the case for me.

Re: Calculating DTI

Thomas_Thumb — Tue, 03 May 2016 02:25:05 GMT

@Peteyglad wrote:
When I got my mortgage last October all that was counted was minimum payments on cards that reported a balance when they pulled my credit. I have heard of banks using a $25 payment as a minimum on all cards in your portfolio, but that was not the case for me.

Agree - what you mention is my experience as well ^

The DTI calculations I have received considered minimum payment as shown on CC statements with non zero balances. No dollar amounts were assigned to cards which had zero balances.