Income To Debt Ratio To Buy A House -

Note: Do not include living expenses like utilities, groceries, or gas.

: Use your monthly income before taxes or other deductions are taken out. Perform the Calculation : Formula : Example : If your monthly debts total and your gross monthly income is , your DTI is Two Types of Ratios income to debt ratio to buy a house

Lenders typically examine two different DTI figures during the application process: Understanding Debt-to-Income Ratio - Citizens Bank Note: Do not include living expenses like utilities,

The is a primary metric lenders use to determine how much of a mortgage you can afford. It measures the percentage of your gross (pre-tax) monthly income that goes toward paying your monthly debt obligations. How to Calculate Your DTI It measures the percentage of your gross (pre-tax)

To find your ratio, divide your total monthly debt payments by your and multiply by 100.

: Include the projected mortgage payment (principal, interest, taxes, and insurance), car loans, student loans, credit card minimum payments, and child support or alimony.