Refinance- Worth it and DTI question

Refinance- Worth it and DTI questionRefinance- Worth it and DTI question
Terrylen asked 5 years ago

Hi, everyone!  I am back after a long time. I initially jlined MyFico when I was trying to obtain a mortgage loan and y’all were great!  


My stats:  Currently at 4.75.  Have been in FHA loan for 6.5 years.  My home value has gone up, though I am not sure enough to be rid of PMI.  Most sources suggest that this is the case, though.  I borrowed $ 350k, owe $ 320k, and the recent comps are all ranging from $ 390s to over $ 450s.


I am the sole borrower on the loan currently.  My husband’s credit and student loan issues would probably be a detriment, though his income would benefit me as a borrower.


I am concerned that my DTI, though manageable, is going to be an issue.  I am assuming they take everyhting, including the mortgage, into consideration.  I would actually LOWER my DTI if I refi’ed- does that get taken into account? I have two car leases and some outstanding loans, though my record is very clean and everything can be explained. My income was higher when I qualified before. I have also always been on time and often ahead with my Sun Trust Mortgage. My EQ score is a 756 and TU is 762.


I guess my big question is- it will go by DTI and not my past relationship, correct? Meaning, even if Suntrust sees that I ahve always paid on time, often getting a month ahead, the DTI might still kill it?


I am looking to get into a conventional and eliminate PMI.  We figure that we can either go to a shorter term loan or lower our payment a couple of hundred dollars a month which would benefit us.


Should I try to refi with Suntrust first or seek other options?  


Hoping someone can answer my questions and help me decide whether I should bite the bullet or store the gun on this.

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