to income ratio, debt ratio, or DTI is the ratio between the
amount of monthly installment and revolving debt a borrower has
and the gross monthly income. The debt to income
ratio measures how much you can borrow based on your proposed
mortgage payments, taxes and insurance in relation to your total
monthly income. Typically lenders allow you to
borrow 33% to 40% of your monthly income.
debt to income formula may vary slightly from lender to lender,
but only slightly in that some may raise the acceptable ratios
and others do not. The overall concept of the debt
to income ratio is uniform though: comparing your debt load to
your monthly gross income.
put your debt to income ratio or DTI is quick and easy way of showing
what percentage of your income is available for a mortgage loan
payment after all your other monthly financial obligations are