Loans & Debt

Debt-to-Income Ratio (DTI)

The percentage of your gross monthly income that goes toward debt payments.

Calculated by dividing total monthly debt payments by gross monthly income. Lenders use DTI, especially for mortgages, to judge how much additional debt a borrower can reasonably handle. A DTI under 36% is generally considered healthy, though mortgage lenders sometimes allow higher ratios depending on other factors.

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