Definition of Debt to Income Ratio (DTI)

Definition of Debt to Income Ratio (DTI)

Definition: What is Debt to Income Ratio (DTI)?

Debt to income ratio is the personal finance measurement which shows what percentage of your income is being paid out in monthly debt payments for loans, credit card and for mortgages.

Definition of Debt to Income Ratio (DTI)

All personal lenders use this measurement mostly. It commonly used in the mortgage industry. Broker want to make sure that you are capable to manage your current debt and paying your monthly mortgage payment before the issuance of the loan.

For that purpose, the Broker use this ratio. If your income is high and you easily pay your current monthly payment as well as new mortgage payment then broker issue the loan.

Financial Ratio is a forum where you will learn about all ratios definitions and formulas.

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