My girlfriend is applying for a mortgage, but is unable to get approved for enough because of high payments on her car lease.
These numbers are rounded for convenience, but currently, the payments are 500. If we pay off an extra 2000 up front, the next four months will have a zero dollar payment, which would make the average monthly payment for the rest of the lease 400.
I understand that officially on record with the lease company, her payments will be the same amount, with the payments deferred for four months, but the average monthly payments for the remaining life of the lease will have decreased to 400. We would immediately begin paying 400 instead of deferring the payments, and continue paying that amount for the life of the lease.
So my question is, will this have any effect on the mortgage application? Or will they only still see that $500 value, and ignore everything else? If it would not have an affect, where is the cutoff as to what amount would be beneficial?