09/18/2026
DTI...You’ve probably heard the term, but here’s what it actually means for you! ✨
DTI stands for debt-to-income ratio, and it’s simply the percentage of your monthly income that goes toward debt payments. Lenders calculate it by adding up your monthly debts, things like car loans, student loans, credit cards, and your future mortgage, then dividing that by your gross monthly income.
Why does it matter? A lower DTI shows lenders you have more breathing room in your budget to handle a mortgage payment. That means less risk for them, and often better loan terms for you.
Most lenders like to see a DTI at or below 43 percent, though the exact number can shift depending on the loan type and your overall financial picture.
Not sure where you stand? Let’s talk through your numbers and figure out exactly what you’re qualified for.
Meleah Wehman, RA | Compass
[email protected]