Is it P+I or PITI?

[jennifergirl]

When we figure a current mortgage payment needs to be approx 33-40% of NET income, does that mean P+I or PITI?

When we figure the bank will try to get us to around 31% through a modification, does that mean P+I or PITI?

[Lhuynh]

Originally Posted by jennifergirl

When we figure a current mortgage payment needs to be approx 33-40% of NET income, does that mean P+I or PITI?

When we figure the bank will try to get us to around 31% through a modification, does that mean P+I or PITI?

From what I know banks look at gross income compare to mortgage. A modification suppose to help put you into a 31%-38%.

Banks will give 31% Front End Debt to Income Ration including PITI, unless they sucker you into another deal.

[jennifergirl]

I thought the 31% was based on NET income? Can someone please confirm? I am now confused again...