Your debt-to-income ratio (DTI) is your monthly debt payments divided by your gross monthly income. Lenders use it to judge what you can afford.
How to work it out
- Add up monthly debt payments: car loan, student loans, minimum card payments, and the expected housing payment
- Divide by your gross monthly income
- Multiply by 100 for a percentage
Lowering it
Paying down debts, especially ones with high payments, can lower your DTI. Limits vary by loan type and lender.
General educational information, not mortgage advice. Programs and rules change. Save More Haven isn't paid by any lender, broker or real estate agent.