Debt To Income Ratio

Debt to income ratio (DTI) is a ratio lenders use to measure home buyers ability to manage their monthly payments and the borrowers’ ability to repay the mortgage on the monthly basis.

To calculate your DTI ratio, your total monthly debts divided by your total monthly gross income. For instance, if your monthly gross income, which is before tax, is $5,000 and your total monthly debts including but not limited to credit cards, car loan, student loan and any other revolving credit or installment debt is $2,000. Your DTI ratio is $2,000 / $5,000 = .40 or 40%. The lower the number the higher the chance of getting a loan. Click Here to fill out a simple form to see what can i do for you.