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hi doing everybody this is kurt henry at the mortgage center we are mortgage brokers and this is just a behind-the-scenes look at how it can restructure mortgage to make it so that a bank will approve it versus say a bank that is declining it so let's just say somebody well I've said in my past videos that typically you know banks and lenders will look at this ratio your monthly payments divided by your monthly income in order to see if you qualify for a mortgage and this needs to be less than 44% as a general kind of rule depending on the situation but if for a lot of its a lot of times it is around 44% that it has to be within so let's just say somebody's turning to qualify for a six hundred thousand dollar purchase price and and maybe they're planning to do a hundred thousand as a down payment and then so the mortgage amount that they need is five hundred thousand and let's just say that the bank or whoever the mortgage person is is saying well you don't qualify for that five hundred thousand dollar mortgage well what we would look at is is of course with regards to this ratio the the income is one thing which I've talked about in my previous videos but the payments could be another thing so the payments that the banks or lenders look at is they look at the mortgage payment which is principal and interest that you're qualifying for plus your property taxes each month plus your heat each month plus any other debt payments each month so what we would say is okay so you're not you don't qualify for this five hundred thousand dollar mortgage what how is there any debt so perhaps this borer has some other monthly payments like car payments or credit card payments or loan payments or whatever the case is so what we could say is is you know instead of doing a hundred thousand as a down payment maybe we decrease that so instead of doing a hundred thousand as a down payment perhaps we change the down payment to fifty thousand so that means that we need we actually need a higher mortgage of 550,000 and you might say well that makes no sense because that's not going to help any situation but the thing is that the 50,000 that we just freed up here we could take that 50,000 and we could say pay off some debt let's just say that the monthly payments on this debt are somewhere around $1,500 a month well and maybe it's $50,000 of credit cards or loans or whatever the case is and the payments are adding up to about $1,500 a month well by asking for another $50,000 $0 on the mortgage the mortgage payment might only be save four or five hundred dollars more per month now that depends on a few inputs and assumptions but let's just say the monthly mortgage payment is only increasing by another four or five hundred dollars a month by asking for another fifty thousand but by doing that we're freeing up fifty thousand in order to pay off debt and if those debt payments are $1,500 a month then the net effect is that we're decreasing $1,500 a month of debt payments even though we're increasing the mortgage payment of $500 a month so the net benefit is $1,000 a month that we're cutting off of this this ratio and that could actually decrease this ratio to make it so that the borrower actually does qualify so I that can be a little bit technical but if you have any questions on that at all feel free to give us a call numbers nine oh five four three six eight zero one zero thanks and have a great day