Let’s look at a basic example of debt-to-income ratio: 0,000 annual gross income as reported on your tax returns/pay stubs In this example, your debt-to-income ratio would be 35% (,500/,000). Well, the debt-to-income ratio goes into greater detail and comes up with two separate percentages, one for all of your monthly liabilities divided by income (back-end DTI ratio), and one for just your proposed monthly housing payment (including taxes and insurance) divided by income (front-end DTI ratio).Front-End and Back-End Debt-to-Income Ratios So in the above example, if your proposed monthly housing payment makes up ,000 of your ,500 in monthly liabilities, your front-end DTI ratio would be 20%, and your back-end DTI ratio would be 35%.You don’t have to use this direct payment option, but doing so may improve your chances of successfully paying down your debt and could reduce your interest rate by one to three percentage points.By comparison, Discover offers a direct payment option for its debt consolidation loans but doesn’t reduce the interest rate for borrowers who choose to use it.Use your home equity line of credit or loan to finance a college education.Tapping into your home’s equity to pay for your tuition allows you to capitalize on the long-term benefits of higher education.You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved. Nerd Wallet rating: 4.5 / 5.0 Good for: Good credit, debt consolidation, co-signers Freedom Plus is an online lender with an old-school, personalized touch: When you apply for a loan, you’ll have a 15- to 20-minute phone call with a company representative.This is a chance to discuss your debt situation and provide information that could lower your interest rate on a loan, such as having a co-signer or a retirement account.
We are an approved lender with Fannie Mae, Freddie Mac, HUD and VA.For example, if you initially qualify for a loan at a 15.99% annual percentage rate, adding a co-signer might reduce that rate to 10.99%, Toms says.Direct pay discount: Freedom Plus offers an option to have the money you borrow go directly to pay off creditors, a feature that few other online lenders offer.At Access National, we pride ourselves in delivering the American Dream of home-ownership one loan at a time. Congratulations on your decision to buy a new home!We believe that bigger is not better when it comes to customer service. There are many important things to consider throughout the process and our professional staff stands ready to guide you through the process. If you are planning on remodeling your home - be it a kitchen, bathroom or backyard - you can contact one of our mortgage professionals who will help find the right loan for you.