What payments are included in a debt to income ratio (see below)

Anything that would be reporting to the credit agencies..ie car, credit cards, and installment loans. Also alimony and child support would count for or against depending on the situation..Gym membership, cable bills and utilities would not count against....

When it comes to determine your debt-to-income ratios, there are 2 calculations. The first is the housing ratio. This ratio is calculated by taking the complete housing expense which is the totality of the principal, interest, property taxes, homeowners insurance, mortgage insurance (if applicable), flood insurance (if applicable) and HOA fees (if applicable) and dividing it by your gross monthly income. The second is the total debt ratio which is calculated by adding the total housing expense, all debt reported on credit report, child support/alimony and unreimbursed work expenses divided by your gross monthly income. Depending on the loan program and lender, the required ratios can vary. Speak with a qualified local mortgage professional to review your debt-to-income ratios and what you can do to improve them. Good luck!

You should leave the calculation up to your loan officer.. most folks who try to calculate their own DTI don't do it properly.. DTI's are calculated based on the minimum payment obligations for DEBT.. meaning money that you have borrowed and have a responsibility to pay back. So utilities, car insurance, etc is not considered. The new housing payment is also included.. the housing payment includes principal, interest, property taxes, hazard insurance, mortgage insurance, home owners association fees, or any other fee required to live in the property your purchasing. The lender will also include in your ratio any court ordered payments for child support, alimony, back taxes, or payments on outstanding judgments. Just like anything in life, there are exceptions to the rules.. and DTI calculations are no different.. it's best you leave it up to the pros.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Anything that is reported to the credit bureaus would be included in your DTI calculation. So payments like credit card payments, car payments, mortgage payments, etc. would be included. Things such as a gym membership or car insurance is not. A lender may factor alimony payments into your DTI calculation.

Examples of debts included in calculating your DTI are: Auto loans, student loans, credit card payments, child support, alimony. In addition to those, the monthly mortgage payment, which is principal, interest, taxes, insurance, mortgage insurance and association dues, if any. Utilities, gym membership, cell phones, child care expenses, or car insurance are not calculated in your DTI.