Would current auto loan affect refinance?

Anonymous · ‎07-29-2016

I am trying to get my car re-financed. I was told last year that my debt-to-income ratio is too high which lead to a denial. (I paid alot of debt off now)

However, I have an old car on my credit that I gave to a close family member who pays me each month with no problems. Its around 7,000.

Then, I have my new car on there (a year old) and it is about 20,000.

Since they would be re-financing the 20,000 car, would they include that 20,000 in the calculation of debt-to-income ratio when considering me?

If so, I would have a total debt of around 30,000 and I don't know if my income could match that.

Anonymous · ‎07-29-2016

@Anonymous wrote:
I am trying to get my car re-financed. I was told last year that my debt-to-income ratio is too high which lead to a denial. (I paid alot of debt off now)

However, I have an old car on my credit that I gave to a close family member who pays me each month with no problems. Its around 7,000.
Then, I have my new car on there (a year old) and it is about 20,000.

Since they would be re-financing the 20,000 car, would they include that 20,000 in the calculation of debt-to-income ratio when considering me?

If so, I would have a total debt of around 30,000 and I don't know if my income could match that.

No they wont use the loan that you are refinancing in the dti calculation. Most refis are very easy as long as you have paid your current loan on time and havent added a lot more debt or owe a lot more on it than it's worth.

Anonymous · ‎07-29-2016

@Anonymous wrote:
@Anonymous wrote:
I am trying to get my car re-financed. I was told last year that my debt-to-income ratio is too high which lead to a denial. (I paid alot of debt off now)

However, I have an old car on my credit that I gave to a close family member who pays me each month with no problems. Its around 7,000.
Then, I have my new car on there (a year old) and it is about 20,000.

Since they would be re-financing the 20,000 car, would they include that 20,000 in the calculation of debt-to-income ratio when considering me?

If so, I would have a total debt of around 30,000 and I don't know if my income could match that.
No they wont use the loan that you are refinancing in the dti calculation. Most refis are very easy as long as you have paid your current loan on time and havent added a lot more debt or owe a lot more on it than it's worth.

Thank you for answering this for me. That is a relief!