wiillrus OP t1_iuhn4mc wrote on October 31, 2022 at 12:24 PM

Reply to comment by Werewolfdad in Multiple Mortgages and Their Effect by wiillrus

For the sake of calculating DTI, do lenders consider my entire mortgage payment amount ($1,000) or only the portion I pay?

MayorOfHamtown t1_iuhnowq wrote on October 31, 2022 at 12:29 PM

Generally speaking, banks do not recognize any agreements between you and a co-borrower. The risk is that the other party could stop paying at any time and then you are responsible for the entire mortgage, so they calculate DTI with the whole monthly payment.

Werewolfdad t1_iuhnt1h wrote on October 31, 2022 at 12:30 PM

Entire payment

Syyina t1_iuhnd9d wrote on October 31, 2022 at 12:26 PM

I think lenders will consider your total debt and your income, not necessarily the amount of your monthly payment or the portion of the monthly payment that you have agreed to pay.

twotall88 t1_iuho8jp wrote on October 31, 2022 at 12:35 PM

>not necessarily the amount of your monthly payment

Debt-to-Income (DTI) is literally the ratio of total monthly payments (credit bureaus have the payment amounts) over your monthly gross income. https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/

This would be the whole mortgage payment as both OP and brother are equally liable for the $1,000 payment.

Syyina t1_iuhpjw3 wrote on October 31, 2022 at 12:47 PM

Thanks for the information!