Debt to income ratio question

[Jae_cubed]

When trying to refinance your mortgage does anyone know if the bank uses your current mortgage payment when calculating your debt to income ratio or do they use what your new mortgage payment will be? I hope I worded that correctly.

If your current mort. is 1000 but you are refinancing and your new payment will be 900 which figure do they use? I'm good at dumming it down...

Thanks in advance.

[pennrj430]

Hi, I'm in the mortgage business. They use what your mortgage payment will be at the new rate to determine if you're eligible. another way to explain it is the underwriter pretends your current loan is paid off and only uses the new loan.

Hope that helps.

[snafu]

How did you allocate your expected side income? Is your wife on board with creating and living within a budget at least for the short term to give the family financially stability? How will you pay off existing debt? How will you use the money that results from lower mortgage payments? Are you willing to impose and live with some short term constraints to clear up high interest debt??? Your DKs deserve a household where money isn't a constant stress factor.
I'm hopeful you'll work out a budget and accept the suggestions offered by Petunia for example.