02/16/2022
Why is this important for you to know? It’s one of the ways that lenders determine your borrowing risk, for a home loan. If you have a low DTI, your chances of a loan approval are higher than if you have a high DTI.
So how exactly do you calculate your debt-to-income ratio? Take all your monthly expenses, including monthly rent or house payment, student, auto, and other monthly loan payments; credit card monthly payments and other debts, then divide that total by your pre-tax income, that’s your DTI.
Debt-to-income ratio = monthly expenses / gross income!
Are you familiar with your DTI? Still not quite sure how to calculate it, or what should be included? Send me a DM with all your questions!
Call, Text or email with any questions you may have.
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