Wednesday, 27 November 2024

DTI Calculator: Quickly Calculate Your Eligibility for a Mortgage

 The DTI ratio is calculated by dividing your total monthly debt payments by your gross monthly income. For example, if you pay $1,500 a month in debts (like credit cards, student loans, and car payments) and your gross income is $5,000 per month, your DTI would be 30% ($1,500 ÷ $5,000). Lenders use this ratio to assess the risk involved in offering you a loan. The lower your DTI, the less risky you appear to lenders. A low DTI is often a critical factor in getting approved for a mortgage. Lenders prefer borrowers who have a DTI ratio of 36% or lower, though some programs may accept ratios as high as 43% under specific circumstances. For more info click here #debttoincomeratio 

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