This article explains what's inside your Debt Consolidation Move-Up Purchase report, which shows a client how consolidating existing debt into a new purchase loan affects their monthly finances. It covers the front and back ratio breakdown, the loan amount and available cash-in-hand for applicable debts, a side-by-side payment comparison, and the full loan details breakdown. Use this guide to understand each section of the report before walking a client through their options.
Navigating to the Debt Consolidation Report
You can find your Debt Consolidation Report within Client Manager as well as within the Loan Comparison sidebar menu.
Navigating through the Client Manager
Client Manager allows you to create reports for your clients using previously saved loan and property details, saving you time when building new scenarios. To learn more, click here.
Navigating through the Menu
To access the Debt Consolidation report using the left-hand sidebar menu, click Loan Comparison, then click Debt Consolidation. By default, the Refinance report will be displayed.
Helpful Tip: You can also search and favorite reports, tools, and calculators. Click here to learn how.
Front and Back Ratios
At the top of the report, you are shown the front and back ratio, the max for both, and by how many dollars they are staying under or how much they are over the maximum.
- The front ratio is calculated by dividing housing expenses by the borrower's gross monthly income.
- The back ratio is calculated by dividing the total monthly debt payments by the borrower's gross monthly income.
Available Cash In-Hand, LTV and Applicable Debts
Next, you will see the Loan Amount, LTV, and Available Cash In-hand which will help your client determine which debts they would like to pay off using the new proposed loan.
- Use the boxes next to their corresponding debts to include in the loan refinance.
- The subtotals and total will automatically be updated below when a debt is added.
- Deficit/ Monthly Savings: Your customers' monthly deficit or savings will appear in the right-hand box.
- Savings through Debt Consolidation: Overall savings gained by consolidating debts will appear in the left-hand box.
Payments
This section compares your client's existing monthly mortgage payment and other debts and obligations against the new proposed loan with their debts consolidated.
Loan Details
Lastly, you will find a full breakdown comparison of all loans, debts, obligations, and equity in both the existing and proposed scenarios.
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