Car loan debt to income

car loan debt to income

The strength of the JPY had a large impact on the Nikkei today’s and as it broke par then the Nikkei was hit closing down around -1.7% in all. Main discussions throughout the European and US trading sessions were over the UK inflation data and the upward surprise.

According to Ford’s just announced plans, my 2022-2024 target for mass deployment of self-driving vehicles in the US is right on target if not overly pessimistic. Ford says it will build a totally self-driving car by 2021 as it seeks to take the lead in the global race to produce the world’s first high-volume driverless vehicle.

The car, which will have no steering wheel or pedals, will be used in the driverless taxi services that Ford said it expects to dominate the market in the coming decade. The US government, bankrupt yet again after another disastrous war of aggression, had its back pushed to the wall in 1971. Up until that point, foreign central banks could redeem US dollars directly with the US Treasury in exchange for gold.

And then, on August 15, 1971, Richard “I’m Not A Crook” Nixon announced the monetary shot heard around the world. James Wesley Rawles is a former intelligence officer of the United States Army, rawlesprolific author and one of the top survival experts in the world. Aetna, the third largest health insurer in the US, announced Monday night that it would exit the health insurance exchanges established under the Affordable Care Act in 11 of the 15 states where it participates in them. I’m not sure of the significance of 20 minutes past the hour, and I’m sure it has some sympbolic meaning to the gold manipulation cabal, but for the last week the price of gold has been getting slammed with an avalanche of Comex confetti at regular intervals at 20 minutes past the hour. In yet another data point that identifies depression rather than a Great Recession, the Wall Street Journal reported last week what most people outside the economics profession had realized a long time ago. As with everything else in this economy, however, that something is not getting worse does not immediately indicate that it is getting better.

Car loan debt to income

The story of millionaire Simon Cowell, who dropped out of school at 15, worked for Sony BMG and EMI Music. Our roundtable guests talk about their roles as agents and being acknowledged by their clients. The world knows Valeria Lukyanova as the girl who turned herself into a real-life Barbie doll. Exporters are always hit when the currency strengthens and it is not clear which is leading which just yet. And, recognizing that the US was essentially bankrupt, foreign central banks, especially France, began to demand gold instead of the dollar.

In his best-selling book series rawlesPatriots he paints a terrifying picture of a post-collapse America where food is scarce, currency is worthless, law and order have broken down, and survival is a daily struggle. It claimed that it had lost “more than $430 million since January 2014” by selling insurance to individual participants in these exchanges. Janet Yellen likes to say that the housing market is recovering, highlighting the economic sector as one of the few bright spots left. The housing market has been out of its crash for five years, but that is not at all the same as a housing recovery.

Our politicians keep telling us that our battle with ISIS is not a “religious war”, but to ISIS it most certainly is.

Car loan debt to income

Usually, the markets can’t breathe and chew gum at the same time — meaning that, by tacit agreement among The Players, they buy stocks only on days when oil quotes are rising.

It didn’t say how it figured that – for example by counting imaginary profits it could have extracted if there had been no competition. This is especially significant given that this is one of the slowest seasonal periods of the year for the buyers of physical gold and silver. NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, COMMODITIES, OPTIONS, BONDS, OR FUTURES. The talk is the market is loosing confidence in the BOJ’s ability to handle this crisis – after 30 years now they are questioning it!

They are very clear about the fact that they intend to kill as many “citizens of the cross” as they possibly can, and they plan to bomb churches wherever they can find them. ACTIONS YOU UNDERTAKE AS A CONSEQUENCE OF ANY ANALYSIS, OPINION OR ADVERTISEMENT ON THIS SITE ARE YOUR SOLE RESPONSIBILITY.

But if it continues for a few more days I’d be tempted to infer that something’s got to give. Whatever happens, we’ve got a ‘live’ short position in the E-Mini S&Ps that is showing a paper profit of $1500 per contract after two days.

Religious targets now appear to be a top priority for ISIS, and that means that every church and every Christian in the western world needs to start thinking differently about security.


car loan debt to income

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401k loan and debt to income ratio

I have a 401k loan in which funds are deducted from my paycheck every two weeks. We are buying a home and would like to know if the 401k loan payments I pay myself will be considered in the debt to income ratio. These deductions DO show up on my paystubs.


What is a Good Debt to Income Ratio?

November 13, 2012

Car loan debt to incomeA common question amongst potential home buyers is what a good debt to income ratio for the loan underwriting process. As important as this question is for home buyers (or those looking to refinance their loans) it isn’t just for this group of people. Everyone should know what a good debt to income ratio is for their personal finances.

To understand what a good debt to income ratio (also known as DTI) is we must first understand what this ratio calculates. You need to know two things to accurately calculate your debt to income ratio:

  • Your total debt.
  • Your total income for a given period of time.

When you are calculating your total debt you want to look at everything like a home mortgage, student loans, car loans, credit card debt, and medical debt. If you owe money to anyone or any financial institution, you need to account for that in your total debt number.

For the ratio’s purpose you’ll want to know what your debt payments are each month as well. This is the number you will compare to your income, but it is still good to know what your overall debt load is as well.

Your total income should be what you make in a month. This is gross income so don’t worry about what’s left after your health insurance, 401k, and taxes come out of the check. (Although if you want to calculate a debt to income ratio after all of this it certainly doesn’t hurt.)

An Example Debt to Income Ratio

Here’s an example to show you how to calculate the ratio.

An individual has the following debt:

  • Home mortgage of $900 per month including escrow and taxes
  • Car loan of $225 per month
  • Student loan payments totaling $300 per month

Their total monthly debt payments come to $1,425.

The same individual makes $4,200 per month gross. That is equivalent to $50,400 over an entire year.

To calculate this person’s debt to income ratio, you simply divide the monthly debt payments by the monthly income ($1,425 divided by $4,200).

The result is 33.93%. This means that about 34% of every dollar that person makes must go to debt payment and that’s before taking into consideration taxes, health insurance, and retirement through their employer.

What is a Good Debt to Income Ratio?

Of course the best debt to income ratio is 0%. That would mean you are debt free and able to use every single dollar you earn toward your daily spending and savings goals like retirement.

However, we all know that getting to 0% debt is really difficult. So what do mortgage companies look for?

Ideally you want to be below 35% debt to income ratio. In the past you could get away with higher debt loads and get approved with a ratio in the 38% range, but that isn’t as common after the financial and housing crisis. Getting below 30% is really good, and getting under 25% is great.

Why Lenders Want a Lower Debt to Income Ratio

So why do lenders want to see less than 35% (or ideally less than 30-33%) on your debt to income ratio? Let’s go back to our example.

Our individual has $1,425 in debt payments per month and $4,200 in gross income. Let’s now take into consideration those other costs like tax and health insurance. Let’s roll taxes and health insurance together for an additional 25% taken out of your check plus another 5% toward retirement in a 401k.

Here’s how the math works:

So you have about $1,500 to handle all of your other expenses: groceries, gas, car insurance, eating out, entertainment. There’s enough money left over to cover those items.

Now let’s look at someone with a 50% debt to income ratio. The numbers are starkly different:

That’s a huge difference and likely unsustainable in the long run. This is exactly why lenders want to see as low a debt to income ratio as possible.

So while it might not be possible for you to get down to 0% debt to income, the lower the number the better off your finances are.

What’s your debt to income ratio? Are you happy with it? Leave a comment!


Low Income Car Loans with Great Rates

Five Important Parts to Qualify For A Car Loan With Low Income

If your income is below average you know how hard it is to purchase a good quality car. With car prices rising it can seem impossible to qualify for any low income car loans.

When it comes to choosing an auto loan lender, finding a car loan with affordable monthly payments is not always easy. The good news is Valley Auto Loans can do the low-income loan searching for you. With one application they will search their lending pool to find you reasonable car loans for low-income families. They can also find lenders that set up car refinance loans you can live with. Here are five important parts to qualifying for a car loan for low-income families. We want to help you know how to qualify for a low APR loan with bad credit.

1 Credit Score and Credit History

Car loan debt to incomeYour credit score carries the most weight when it comes to getting a low APR for your auto loan. What Credit Score Is Needed To Buy a Car?

If your credit score is not above average, the lender will look closer at your credit history. Your automotive credit report shows any car loans that you have had in the past. It also shows the consistency you have had to make your car payments as well as the lengths of previous loans.

If your low income is the only problem you have getting a loan and your credit history with past car loans is good, your automotive credit report will help your chances for a new loan.

Typical car financing lenders using an approval formula will not go below a credit score of 525 or less. If your credit score is between 500 and 575, you will need to use a bad credit auto loan lender. To find a lender that reports your auto loan credit history, you will have to shop around to find a good APR.

Lenders who offer bad credit car loans will charge a higher interest rate than a typical lending institution. By allowing them to report your credit, those bad credit lenders will help you in two crucial ways.

First, if you qualify with a subprime lender, over time, you will get an improved credit score that will help any bad marks with past auto loans. Second, they can offer you a lower APR than the lenders who do not report your credit to the three credit burrows. This is because car dealers that offer their own financing such as “personal loans,” “no credit car loan,” “Buy Here Pay Here,” “Guaranteed financing” or “Tote Your Note” car dealers are taking a huge risk in lending money.

Car dealers who finance at the car lot will make sure it is worth the high risk auto loan. They are known for charging a large down payment and high interest so in the event you do not make your payments they will not lose as much money. Many times the cars they sell are so over priced that the dealer cost is mostly paid for when you leave the lot.

Valley Auto Loans is a loan broker that can send your loan application to their financing lender pool to get you a fast, affordable car loan for bad credit and low income that will help you repair your credit rating.

Lenders also compare your existing debt to the loan you are requesting to see if the loan will become burdensome to you over time. The way they do this is to look at the total cost of your monthly bills and debts and divide that by your total monthly income before taxes.

Lenders hope to see that your DTI (Debt to Income) ratio will not exceed 50 percent of your income.

In considering a loan approval, they will calculate your payment to income ratio by dividing your car loan payment by your gross monthly income to find your PTI (Payment to Income) ratio. Auto finance lenders will try to stay under 20 percent of your total income with your PTI.

When your credit score puts you in a situation to use a bad credit auto lender, your income requirements become a critical factor for qualifying for a car loan.

Many subprime credit auto lenders will have a gross income criterion of around $2,000 per month. Valley Auto Loans has many lenders that will approve someone with a gross monthly income of $1,500 or more. If you can meet some simple, basic requirements, you can apply for their low-income auto loan program.

This is good news for low-income families needing a new car loan.

Another big plus is if you have worked at the same job or employer for a year or more. This shows that you have a stable and reliable income. If you have been employed for less than a year, then the lender will look to your past job history to see if you have had continuous employment for at least three consecutive years.

They will want to see that you have not changed employers more than three times in that period.

If your lender requires a down payment for your low-income car loan, you will probably get a lower APR, and your payments will be lower.

You can request a low-income car loan with no down payment. However, the loan program that you get will not be as good as someone who uses a down payment.

There are a wide variety of loan programs from Valley Auto Loans tailored to fit your need for low-income car loans.

Choosing a poor credit car loan lender can be easy!

There are a lot of poor credit lenders out there offering low-income car loans. However, you will find many will make you jump through hoops to qualify for their low-income family programs. Even then they only offer low-income auto loans from their company only.

Using a car loan evaluation service like Valley Auto Loans will give you the ability to have your application viewed by many of our various lending agencies. Then you can qualify for a loan package that is set up to fit your financial needs.

You can review you loan offer in the privacy of your home. You are not obligated to accept any loan offer terms that you are not happy with. Even a first-time car buyer can find great car loans for bad credit and low income.

So, how to get a car loan with low income? Here are some helpful tips.

Tips For Getting A Quality Low Income Car Loan

Tip 1- Know Your Credit Worthiness

Check your credit score and your credit rating history. Make a note of anything you think is incorrect or should have been resolved and call your creditors to have corrections made to your report.

Knowing your real credit score will keep you from being taken advantage of by a car dealer who is trying to put you in a higher APR bracket. It will also give you an idea of what type of lender you will need to apply to for the right auto loan.

However, if you need to make corrections, hold off on applying for a car loan until your credit score shows the corrections. In doing this, you will save hundreds of dollars in interest charges when you do apply.

Tip 2- Do Some Competitive Car Shopping

Anyone with good credit will get a fairly good APR for their car loan and will probably take the first car deal that comes along. Someone with bad credit and low income cannot do much about the high APR, but with a little work, you can get a lower payment.

You do this by finding a great car deal with a low selling price. The lower sticker price can compensate for the higher interest rate you may have to pay.

Do some research on finding a great used car or read up on new car buying guides to learn how to haggle with car salespeople for a lower price.

Tip 3- Do Not Leave Any Loan Application Fields Blank

Know what the lender is looking for with car loans for low income and give them all your information completely. List employers phone numbers and all of your income including child support and other forms of income that can be documented.

Tip 4- Know Your Budget and What Your Monthly Payments Can Be

This is where a car payment calculator can come in handy. A car payment calculator is easy to use and will give you a good estimate of what your payments will be. When you add different down payment amounts and loan terms, you will see how they affect the monthly payment amount.

This is also a good time to start a simple monthly budget if you have never had one. Valley Auto Loans can show you how to get a car loan with low income by using a simple monthly budget. It is designed to help you save a down payment and pay your bills with money to spare. Spare? Yes, a free check every couple of months to spend as you need.

Tip 5- Use a Down Payment and Make It As Large As Possible

20 percent is recommended but do as much as you can and don’t fall for one of those “No Money Down” loans. A no money down loan will give you one of the highest monthly payment loans you can get. Remember the goal here is to get a great loan with the lowest monthly payment you can get.

Remember finding a low sticker price is a critical factor if you are looking for car loans for bad credit and low income. It is the easiest way to get a low monthly payment, so keep your car choices simple.

Find a car that is economical and dependable. That category usually falls on compact, entry level cars that provide good transportation without all the luxuries and add-ons that drive the sticker price up. Choosing the right cars for low income auto loans will help you get more car for less money.

Reasons For Low Income Auto Loans Rejection

You may be wondering, what are some common reasons for being turned down for a car loan if you have a good job, steady income and so so credit?

  • Many low-income car loans will never get approved if any of the application fields are blank, or you are unemployed.
  • You have a dismissed bankruptcy or history of multiple bankruptcies.
  • Have a history of car repossessions.
  • Have a claim against you for missed child support payments.
  • You request a loan or refinance amount that will put you in a negative equity car loan.

Final Thoughts About Your Credit Report

Your credit score is the prime indicator for companies who might offer you credit. It is wise to take the steps that can help you get the best possible credit score regardless of your income.

Almost everyone with low income will need to borrow money for a car purchase at some point. You can be sure their credit score will play a big part in dictating the terms of any low income auto loans. Valley Auto Loans offers special financing auto loans for good and bad credit auto loan applicants with discharged or current bankruptcy, poor credit scores, low income or other financial issues. Showing financial responsibility will set you apart from the crowd and help you to get approved for the best low income car loans today.