What is Debt-to-Income Ratio?

Your debt-to-income ratio (DTI) is all your monthly debt payments divided by your gross monthly income. DTI is one of many factors lenders use to evaluate a buyer’s ability to manage the monthly payments. It’s important to note that lenders, loan products, and banks may have slightly different systems and “techniques” for how to assess DTI.

DTI = All Monthly Debts / Gross Monthly Income

Considerations: Article has been modified and adapted from Nerdwallet.com, Rocket Mortgage, Zillow, and Investopedia.

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