Optimal Debt

You may have heard of the term “Debt to Income” ratio, or DTI. That is because, in the mortgage industry, you qualify for a loan according to the income and debt you have. This tool is interesting if you are wanting to qualify for a larger loan amount.

It is very easy for a mortgage company to tell you “pay down your debt” and leave the blank space of how much of it you have to pay down, or simply tell you “you don’t qualify”. Some borrowers owe a lot, and it would be very difficult to pay all the debt off. However, how much should you pay off? To answer this question, we created the Optimal Debt tool.

Your Optimal Debt is a term that it does not exist in the mortgage industry, however, seeing the need for it Bluecastle Lending created it to identify the debt amount that will help you qualify the most without excessively paying down your debt. It is the exact amount of debt that one more dollar in debt will cost you one more dollar in qualifying power.

It will let you know how much is your perfect monthly debt in reference to qualifying for a mortgage, how much of it does not affect you at all for the mortgage, and the point into which every dollar that you pay in monthly debt decreases your qualifying power one additional dollar.

Go ahead and give it a try. It’s free!

The software is currently being developed by Bluecastle Lending. Coming Summer 2018.