This ratio compares monthly debt payments to monthly gross income and provides the percentage of your gross monthly income that goes towards paying your monthly debt payments.
STEP 01 Add up your monthly debt payments, including credit cards, loans and mortgages.
STEP 02 Divide your total monthly debt payment amount by your monthly gross income.
STEP 03 The result will yield a decimal, so multiply the result by 100 to achieve your DTI percentage.
DID YOU KNOW? Generally, 43% is the highest DTI ratio a borrower can have to qualify for a mortgage, but lenders prefer a ratio lower than 36%, with no more than 28% of that debt going towards servicing a mortgage or rent payment. You can lower your DTI ratio by reducing your monthly recurring debt or increasing your gross monthly income.
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Christa Ursini
914.893.0095
eXp Realty in New York
777 Westchester Ave
White Plains, New York 10604
Brittany Ursini
203.253.5009
eXp Realty in Connecticut
1266 East Main Street, Suite 700R
Stamford, CT 06902
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