Gloria Shuler
Coldwell Banker Realty

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Gloria Shuler

Coldwell Banker Realty

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Debt-to-income Ratios

Debt-to-income Ratios When you’re ready to buy a house, a lot of jargon is thrown around. One term you’ll hear a lot is debt-to-income ratios. If you’re not a math wizard, such lingo can sound intimidating, but it doesn’t need to. Debt-to-income ratios are simple to figure and use to your advantage, even giving you the opportunity to figure out how much house you can afford before you even set out to look. The debt-to-income ratio is, simply, the way that mortgage lenders decide how much money you can comfortably afford to borrow. It is the percentage of your monthly gross income (before taxes) that is used to pay your monthly debts (not your monthly living expenses). Two calculation…
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Data last updated: Sep 27, 2022 6:24:am.