Tuesday, November 29, 2011

DYK? - Debt-to-income ratio (DTI)

Real Estate

Debt-to-income ratio (DTI) is the first test of mortgage-worthiness. The DTI is the sum of a family's fixed monthly expenses (e.g., mortgage, car payments, minimum credit card payments, monthly child support, and student loans) divided by gross monthly income. Lenders prefer DTI be no higher than 36%.

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