Max DTI on an Auto Refinance?

[Anonymous]

I have a joint mortgage w/ my brother and we are in the middle of refinancing. I am hoping to refinance my car as soon as this refi is fully funded and am wondering how exactly DTI is calculated w/ a joint mortgage? What is the typical maximum? Will I be able to get them to caluclate DTI only counting half of the mortgage payment since we split it 50/50? Our current payment is $2729 and our new payment will be $2138. Minimums post-refi will be as follows:

Income: $56,000 (includes built in overtime and profit sharing/bonuses)

Mortgage: min $2,138 after refi (split 50/50 w/ my brother so it's really $1069)

Costco Citi card: $10,270/$17,000 min $251

Chase Freedom: $4,350/$4,900 min $43

Auto: $21,399/$32000 min $470

I tried to refi my car back in March with this same CU when my scores were much lower, debt was much higher and when I still thought that Credit Karma was the only way to check your credit scores (LOL!). I have paid down a significant chunk of debt since then, wiped out my nasty 25% interest rate Discover card from over $8,000 down to $0 (!!!) and am hoping that between that and the lower mortgage payment I will actually qualify this time. I've already called my credit union and found out that they use Experian Fico 8 Auto score (mine is 747) and was told that I qualify for their A-tier rates of 4.4% up to 72 months with a .5% reduction for autopay. Not sure if it would be worthwhile to shop this or just pull the trigger? With the information above (I can provide any other necessary info if needed) is it realistic to think that I could get a better rate with someone else? The only reason that I want to stretch back out to 72 months is to lower my monthly burden to give myself more firepower to wipe these **bleep** credit cards out. As soon as those are gone I plan to throw everything that I can at the car and pay it off as quickly as possible. The end goal is to be debt free except for my mortgage!

The other question would be does anyone have recommendations on who else I could apply with?  I can provide relevant FICO scores if necessary.

[Anonymous]

Income: $56,000 (includes built in overtime and profit sharing/bonuses)

Mortgage: min $2,138 after refi (split 50/50 w/ my brother so it's really $1069)

Costco Citi card: $10,270/$17,000 min $251

Chase Freedom: $4,350/$4,900 min $43

Auto: $21,399/$32000 min $470

I tried to refi my car back in March with this same CU when my scores were much lower, debt was much higher and when I still thought that Credit Karma was the only way to check your credit scores (LOL!). I have paid down a significant chunk of debt since then, wiped out my nasty 25% interest rate Discover card from over $8,000 down to $0 (!!!) and am hoping that between that and the lower mortgage payment I will actually qualify this time. I've already called my credit union and found out that they use Experian Fico 8 Auto score (mine is 747) and was told that I qualify for their A-tier rates of 4.4% up to 72 months with a .5% reduction for autopay. Not sure if it would be worthwhile to shop this or just pull the trigger? With the information above (I can provide any other necessary info if needed) is it realistic to think that I could get a better rate with someone else? The only reason that I want to stretch back out to 72 months is to lower my monthly burden to give myself more firepower to wipe these **bleep** credit cards out. As soon as those are gone I plan to throw everything that I can at the car and pay it off as quickly as possible. The end goal is to be debt free except for my mortgage!

The other question would be does anyone have recommendations on who else I could apply with?  I can provide relevant FICO scores if necessary.

[Anonymous]

Most underwriter's are going to ding you for the full mortgage payment rather than halving it. This is where relationship lending is helpful, a local CU/bank that you have a good relationship with, is more apt to sit down with you in person and listen to your story and take you at your word. Large lender's have strict guidelines, which they normally do not sway from, and they will take your minimum payment's reported to the CB to calculate your DTI, in other word's, they will use the full amount and not half.

I would say if you have a good relationship with your credit union, give it a go and see if they are willing to refinance, as the rate you shared isn't all that bad, especially considering we don't know what you are trying to refinance in term's of collateral. Sure if you went and bought a brand new vehicle you might qualify for a lower rate than 4.4%, but on used vehicle's it is getting hard to get a rate much lower than the one you are qouted, and if they do it's maybe by a full point or so. Obviously the reason to refinance is lower monthly obligation's and potentially save on finance charges, if the qouted option does this for you, and the CU is willing to do it on your credit/DTI/PTI, I say go for it!

[randomguy1]

I have seen lower interest rates with your credit score.

Google:

Alliant FCU

DCU

PenFed

If you list your state, we might be able to direct you to a local credit union. I can advise on TX rates.

[Anonymous]

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@randomguy1 wrote:

I have seen lower interest rates with your credit score.

Google:

Alliant FCU

DCU

PenFed

If you list your state, we might be able to direct you to a local credit union. I can advise on TX rates.

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I live in Oregon, not sure if I'm able to join any of those that you listed?