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To: yldstrk

In my day it was 28-36 and no more. Then it got to where there were no limits. Just lie until the ratios get down to where they need to be.

As for the principle increasing, they got rid of negative amortization loans decades ago.


17 posted on 01/10/2013 6:42:46 AM PST by Terry Mross (Liberal people who hate me read my posts. It drives them nuts. hee hee)
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To: Terry Mross

“In my day it was 28-36 and no more.”

Conventional, right? 28% PITI, 36% total monthly debt?

But FHA (govt guaranteed) was a higher (looser) ratio, with potential of financing in closing costs up to 103% LTV. I don’t remember the ratio.

Of course, FHA fell by the wayside when subprime loans kicked in.

Now, FHA is the new subprime with the same problems.


25 posted on 01/10/2013 8:15:59 AM PST by moovova
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