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Posted in Auto Loans
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210greg

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Does leasing a vehicle affect chances of obtaining a mortgage?
I currently have an auto loan with an auto loan balance of $26K (all payments made on time for the past 9 months since loan inception). Since I'm planning on applying for a mortgage loan - I'm considering selling the vehicle to remove it from my credit (lower my debt to income) and then consider leasing a vehicle.
If obtaining a smaller monthly payment via an auto lease, will an auto lease still carry the same weight as having an auto loan? (Meaning, will my debt to income ratio be lowered with having a smaller lease payment (say $200/mo. lease) (vs. a $425/mo regular car payment)?

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Of course a smaller monthly auto payment would lower your debt to income.

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