Feb

5

What is used to calculate the 31% for mortgage restructuring?

Filed Under Renting & Real Estate 

Josh L asked:


What is used to calculate the 31% for mortgage restructuring?
My actual mortgage payment is less than 31% of my monthly income, however, my mortgage plus escrow is greater than 31%. Which counts?

JAY

Comments

3 Responses to “What is used to calculate the 31% for mortgage restructuring?”

  1. RED on February 5th, 2010 10:09 pm

    ARNULFO

    Total monthly payment. It is 28% for mortgage, and 36% for total recurring expenditures (car, mortgage, insurance)… as a rule of thumb.

  2. David Z on February 6th, 2010 2:11 am

    ASHLEY

    they use the total monthly payment including escrow amounts.

  3. Rush is a band on February 8th, 2010 1:48 pm

    WILFREDO

    It’s mortgage plus escrow.

    All a restructure would do for you is reduce it to 31%. What percentage are you at right now? If it’s something like 34-35% you aren’t going to save much money in a restructure. Is it really unaffordable or are you just going to try to save a few bucks at the expense of your fellow Americans?

    good luck!

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