If a member pays down their auto lease balance, which amount qualifies for exclusion from DTI calculations?

In the context of debt-to-income (DTI) calculations, certain amounts paid down on an auto lease balance can be excluded to give a more accurate representation of a borrower's financial situation. The correct threshold for excluding the amount from DTI calculations is an amount below $3,500. This guideline is based on the policy that considers payments or balances deemed manageable.

When assessing DTI, lenders aim to understand a borrower's capacity to handle monthly obligations without being overly burdened. A payment below $3,500 allows for a cushion, indicating that while monthly payments are part of the obligations, this particular parameter aids in calibrating risk during underwriting.

Given this context, it is essential to recognize that amounts above this threshold may not provide the same level of comfort in an applicant's financial health, which is why they are not excluded from the calculations. This approach helps to ensure that applicants are evaluated fairly while accounting for manageable debt levels in relation to their income.