Do you know your DTI? Your debt-to-income ratio is the percent of your monthly gross income that goes to debt repayments. For example, if you make $10k per month, have a $500 student loan repayment, $500 car payment, and $2000 mortgage, your total debt obligation is $3000/month- 30%. Why is this number important? Your debt-to-income ration can affect the choices lenders make when you apply for new lines of credit, like a mortgage. The magic number to stay below? 43%- that’s the level where it will be more difficult for mortgage providers to lend to you.

Posted on by March 16, 2022

Do you know your DTI? Your debt-to-income ratio is the percent of your monthly gross income that goes to debt repayments. For example, if you make $10k per month, have a $500 student loan repayment, $500 car payment, and $2000 mortgage, your total debt obligation is $3000/month- 30%.

Why is this number important? Your debt-to-income ration can affect the choices lenders make when you apply for new lines of credit, like a mortgage. The magic number to stay below? 43%- that’s the level where it will be more difficult for mortgage providers to lend to you.
from Utah Homes and Land For Sale