Heather C asked:


When you apply for a mortgage do lenders look at your total outstanding balance on a car loan or your monthly payment for the loan? I ask because we have a $465 payment and are wondering if we should refinance or trade the car in for something else in order to bring down the monthly payment as we are getting ready to apply for a mortgage.

Chad

abrennan01 asked:


My fiance and I have a lot of student loan debt but we’ll be taking courses at least half time so we don’t have to pay them back yet. Would a mortgage lender consider that when calculating how much we can borrow for a house?
Deferment, for those of you who don’t know, is when you don’t have to pay back your loan because you meet certain criteria. It’s different than default, which means you didn’t pay it under the terms to which you agreed.

Carolyn