What is the Debt-toIncome Ratio?
The debt-to-income ratio, DTI is a form of measurement of a person’s financial situation. It compares an individual’s monthly debt payment to their monthly gross income. It’s used by most lenders to assess a borrower’s ability to manage monthly payments and repay their debts.
How id the Debt-to-Income Ratio used in mortgage?
Concerning mortgages, lenders will look at a borrowers DTI to measure their ability to repay their mortgage loan. There are different DTI requirements for different loan types and depending on a borrower’s credit score. A good DTI can help you secure a better loan deal.