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Mortgage  Question?
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Does lender use total car lease or payment apply mortgage?

When calculating the debt-to-income ratio for a mortgage do you include the total amount of the car lease or only the monthly lease payment? Specifically, is the debt-to-income ratio different for a monthly car lease payment as compared to a car loan payment?

Michael Jensen, Mortgage and Finance Guru
, Mortgage and Finance Guru

When you apply for a mortgage the monthly lease payment, not the total amount of the lease, is used to calculate your debt-to-income ratio to determine your ability to qualify for a mortgage. The same applies with an auto loan. The monthly auto loan payment and not the principal balance of the auto loan is used to calculate an applicant's debt-to-income ratio. We provide a comprehensive overview of borrower debt-to-income ratios on FREEandCLEAR. You can also use our MORTGAGE QUALIFICATION CALCULATOR to determine what size mortgage you can afford based on your monthly income and debt.  Simply add your monthly car lease or car loan payment to your total monthly debt when you perform your calculations.

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About the author

Michael Jensen, Mortgage and Finance Guru

Michael is the co-founder of FREEandCLEAR. Michael possesses extensive knowledge about mortgages and finance and has been writing about mortgages for nearly a decade. His work has been featured in leading national and industry publications. More about Michael

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