PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Will my car loan affect my mortgage application?
I’m still paying off my car and have been looking for a house. Will my car loan affect my mortgage application?
Lauren Smith · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Your
car loan
affects your credit score, which can affect your mortgage application. More specifically, your car loan is considered a debt in your portfolio and impacts your debt-to-income ratio (monthly expenses divided by monthly income).If your credit score is too low and your debt-to-income ratio is too high, you may be unable to qualify for certain mortgage terms (or not qualify at all). It doesn’t mean it’s impossible to get a mortgage; your terms may just be less favorable.
You have a better chance of getting a good mortgage if you do the following:
- Pay off your car loan faster. Pay bi-weekly or round up payments to the nearest $50 or $100
- Try to get a discount on your loan (sometimes you’ll get discounts for making automatic payments)
- Improve your credit score
Once you secure a mortgage, you can look into rolling your mortgage and car loan together into a consolidated loan to make payments much easier.
If you’re looking to free up extra cash to make loan payments easier, use
Jerry
to find cheaper car insurance. Choose from competitive quotes from up to 50 top insurance companies and Jerry takes care of the rest—securing your new policy and canceling your old one.View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies