∙ On a $300,000 loan that would have translated into an upfront fee of $1,125. Or if the borrower can’t pay that and opts for a higher interest rate instead, it will cost $24.75 per month. Over 30 years, that would have meant an additional $8,910.
The DTI ratio by itself is not a strong indicator of a borrower’s ability to repay loans, said Robert Broxmidt, president and CEO of the Mortgage Bankers Association, an industry group.
