r/CRedit • u/LankyCommission7106 • 8d ago

Mortgage Good debt?

I hear it’s good to have different types of debt to diversify your credit file. When buying a home would it be best to have small amount of debt in each category like revolving and installment debt OR would it be best to have 0 debt?

5 Upvotes

86% Upvoted

24 comments sorted by

View all comments

Show parent comments

1

u/LankyCommission7106 8d ago

I plan to buy in the next year or two. My DTI is around 30%. I can get that lower before then though. Is that a bad DTI ratio?

1

u/JennF72 8d ago

30% isn't that bad but what is your disposable income after the 30%? For low income it could make or break the mortgage and for higher incomes, you'll have more in disposable at 30%.

2

u/LankyCommission7106 8d ago

Disposable is about $5,500 after bills and expenses.

2

u/JennF72 8d ago

You'll be fine then. I'm taking in account you've figured in the cost of the mortgage with this.