DTI (Debt-to-Income Ratio)
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This content is provided for general educational purposes only and does not constitute financial or mortgage advice.
Definition
Your monthly debt payments divided by your gross monthly income, expressed as a percentage.
Explanation
Lenders use DTI to assess whether you can afford a mortgage. Lower DTI generally improves eligibility.
Example
If your income is $6,000 and debt payments are $2,100, your DTI is 35%.