Skip to main content

Posts

Showing posts with the label Debt To Income Ratio

What is Debt To Income Ratio for Mortgage

Understanding  Debt To Income Ratio for Mortgage  (DTI) The  Debt to Income ratio for a mortgage  is one of the most important things when applying for a mortgage after credit score and loan to value ratio. Understanding debt to income ratio is significant as it would help you to know how lenders qualify a borrower based on  DTI . Today we will learn the phenomenon of DTI and understand the math behind it. The Term DTI Mostly, your DTI is going to compare what you owe and what you make every month. It is going to take the amount of money you pay towards your debts every single month and divide that by how much you make every month. You may have debts like credit cards, student loans, car loan, and any other personal loans. You may or may not have more than one source of income. If you are employed your paycheck is your primary source of income which you get may bi-weekly or monthly, depending on the terms of the organization you work with. T...