Lower DTI - Credit consolidation?

[timsim]

I'm looking in the next couple of months to qualify for a mortgage.  Currently I have 7 credit cards and 3 with balances.  I pay about $175 per month on those 3 and  I owe about almost 8000 on those.  My question is if I get a loan to pay off those cards, it would be about $250 a month, wouldn't that be worse having a higher payment per month to get all my credit cards to zero?  Would the consolidation loan be counted towards my DTI?

Thanks in advance!

[sports1965]

of course it will count towards your Dti

[frugalQ]

Are you trying to increase your scores? What is the interest rate and length of the loan?

The loan will count against your DTI, but it may be financially beneficial to get a loan with an interest rate. Since you are a few months out from applying for a mortgage, reducing your revolving outstanding debt would probably increase your scores...and you will pay less in the long run.

But you should make sure that your DTI is not thrown off due to the higher payment.

Good luck

[timsim]

Ok, thanks.  I'm more worried about my DTI than my credit score at this point.  I'll just stick with paying down the credit cards..