What Is a Debt-to-Income Ratio (DTI)?

Debt Ratio and Debt-to-Income Ratio

What is your debt to income ratio? To calculate your debt to income, also known as DTI, here’s what to do! Take your minimum monthly payments on each of your monthly debts & divide that by your gross monthly income (pre-tax). Multiply that number by 100. For example $1750 in monthly debt divided by $5000 income multiplied by 100. This would get you a 35% DTI. debt to income is key to the mortgage approval process. The lower the number, the better your chances. 🏡 💰 #mortgage #loanofficer #homel

Debt-to-Income Ratios (2025): Everything You Need to Know about DTIs

Debt-to-Income (DTI) Ratio: What’s Good and How To Calculate It

Calculating your debt-to-income ratio is an important step when applying for a mortgage. Here's a step-by-step guide on how to calculate it: Step 1: Gather your financial information Collect all the necessary financial information, including your monthly income and your monthly debt payments. Make sure to include all sources of income and all types of debts. Step 2: Calculate your monthly income Add up all your sources of monthly income. Include your salary, wages, bonuses, commissions, rental i

Debt-to-Income Ratio - Overview, Formula, Example