Debt to income ratio calculation
Date: Sun, 11/28/2010 - 03:08
Do financial institutions take into consideration to calculate the dti the mortgage payment? I was told that debt to income ratio is the relationship of non-mortgage related debt to your gross monthly income. It is found by dividing non-mortgage related debts by the gross monthly income. Is that true?
Your definition of debt-to-income ratio is perfect. Debt-to-inco
Your definition of debt-to-income ratio is perfect. Debt-to-income ratio is used by lenders to determine whether or not credit will be extended to you.
I don't know if that's accurate. I think it's all debt, not jus
I don't know if that's accurate. I think it's all debt, not just non-mortgage. I say this because mortgage lenders calculate dti and the general rule of thumb is that your mortgage payment shouldn't exceed 40% dti.
Mortgage debt ratio gives you an idea on whether you qualify for
Mortgage debt ratio gives you an idea on whether you qualify for a home loan. The standard DTI Ratios for conventional loans are 36% (Mortgage Debt Ratio) and 28% (Housing Ratio). However, for FHA loans, the Mortgage Debt to Income Ratio is 41% and Housing ratio is 29%.