debt-to-income

[dalasdon]

how much does dti weigh in getting a car loan?  

[brian2220]

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@dalasdon wrote:

how much does dti weigh in getting a car loan?  

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us bank told me 40%

30% income

30% credit history 

[dalasdon]

i make 41K, is it out of reach to purchase a bmw financing 33k?

[pizzadude]

What are your current monthly obligations ?  Mortgage, Rent, Debts, etc.... ?

Also how much are you planning on putting down ?

[dalasdon]

monthly obligations are 1300, nothing down if they allow, or 5k

[pizzadude]

So your gross monthly income is around $3,400....

Montly obligations of $1,300..........And a 5 year loan at 6%, borrowing $33,000 would have payments of ~$638.

This would give you $1,938 in payments per month, this is 57% of your gross income.....

That might be a bit on the high side and wouldn't leave you much to live on.

[dalasdon]

well i work all the time, lol, im sure thats not going to convince a finance manager.  so i need to get it down?  i guess starting with a lesser value car, 25k paying off in 2 years

[pizzadude]

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@dalasdon wrote:

well i work all the time, lol, im sure thats not going to convince a finance manager.  so i need to get it down?  i guess starting with a lesser value car, 25k paying off in 2 years

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lol, yeah they would probably be happy to sell you the car, who needs food right ??

I think its a good idea to look for something less expensive.....Or if you could save up more for downpayment that would help as well.

[Anonymous]

Most lenders do not want to go over 50% DTI in total.

[CS800]

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@Anonymous wrote:

Most lenders do not want to go over 50% DTI in total.

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So many people out there with DTI's above 50% in this economy.