What is Debt-to-Income (DTI) Ratio?

A brief explanation of debt-to-income ratio and how it is calculated.

Debt-to-Income ratio (DTI) - details your ability to manage monthly payments and repay debts (mortgage lenders weigh this factor heavily).

Calculate: take your total monthly debt amount and divide it by your total monthly income. The outcome, a percentage (%), highlights your level of loan risk. The lower the percentage, the more likely you are to be approved.