Debt To Income Ratio Calculation – What Does It Mean To Me?

Debt To Income Ratio

Your debt to income (DTI) ratio is all your monthly debt payments divided by your gross monthly income. Lenders use the DTI ratio, along with credit history, to determine how well a borrower manages his/her monthly payments and whether has the ability to repay a loan. Each lender has their own debt-to- income ratio approval guidelines, with mortgage lenders having lower, more restrictive DTI limits than a personal loan lender. Read more…

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