More Subprime Borrowers Are Missing Loan Payments

Re:More Subprime Borrowers Are Missing Loan Payments by scarface74 on Thursday May 19, 2022 @03:22PM (#31438919)

I’m not aware of any mortgages that allow that debt to income ratio for a mortgage. Unless it’s a rental and then the down payment requirements are insane.

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Re:More Subprime Borrowers Are Missing Loan Payments by NovemberWhiskey on Thursday May 19, 2022 @03:58PM (#31439389)

A little while ago, when 3% loans were still a thing, a $450K loan over 30 years was a $1,900/month expense. An income of $80K with a $1,900/month in debt is a 29% DTI which is comfortably below the DTI limits for a conforming loan (43-45%).

Even at 5.5%, it's still "only" 38% DTI ratio.

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Re:More Subprime Borrowers Are Missing Loan Payments by scarface74 on Thursday May 19, 2022 @10:26PM (#31442665)

- No one making $80K is going to have money for a $90K down payment so you have to add PMI - $300/month.

- you’re also ignoring property taxes and insurance. I pay another $400 a month for that in a relatively low cost of living state and I have a $5K deductible.

That 1900 adds up to $2800/month real quickly.

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