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Debt To Income Ratio

All articles tagged with #debt to income ratio

economy5 months ago

US Household Debt and Financial Struggles Rise in Q2 2025

In Q2 2025, total household debt increased modestly to $18.4 trillion, with a decline in debt-to-income ratio indicating improved consumer financial health, despite a significant spike in delinquent federal student loans as they re-enter credit reports after forbearance. Foreclosures remain low, and third-party collections are at record lows, but the rise in student loan delinquencies and potential future collection actions pose risks to the credit landscape.

via Wolf Street|
#debt-to-income-ratio#delinquencies#economy
finance2 years ago

FHFA and Biden Administration Cancel Controversial Mortgage Fees for Homebuyers.

The FHFA has canceled its plan to change a mortgage fee for people with certain debt-to-income ratios, which would have been levied on certain borrowers with DTI ratios above 40%. The fee was supposed to go into effect on May 1, with other changes based on credit score and loan size. The cancellation of the fee is a relief for many borrowers, as it would have hurt future mortgage borrowers. However, fee changes based on credit scores and down payment sizes went into effect on May 1, resulting in some people with high credit scores paying more than they would have prior to May 1.

via USA TODAY|
#debt-to-income-ratio#fees#fhfa
finance2 years ago

The Impact of Credit Scores on Mortgage Payments and Homebuyers

Financial experts caution that while having a good credit score can help secure a lower interest rate on a mortgage, it does not necessarily guarantee a lower monthly payment. Other factors such as debt-to-income ratio and the size of the down payment can also impact the monthly payment. It is important for potential homebuyers to consider all of these factors when determining what they can afford.

via KOMO News|
#credit-score#debt-to-income-ratio#finance
personal-finance2 years ago

"Managing Your Debt: Tips and Strategies for Financial Freedom"

The average debt balance in the US has risen to $101,915, including mortgages, student loans, and auto financing. However, the amount of debt matters less than the ability to pay it off. Here are six signs that your debt is out of control: you can't save for an emergency fund, you can only afford to make minimum debt payments, you've been denied for new credit, you're opening new credit card accounts to help pay for older ones, you're consistently late paying your bills, and your debt-to-income ratio is above 36%. To pay off debt, decrease discretionary spending or increase income, review bills and loan statements, contact lenders for leniency, consider debt management plans or debt settlement, and consult with a credit counselor or financial planner before declaring bankruptcy.

via CNBC|
#credit-score#debt#debt-to-income-ratio