debt-to-income
Borrower qualification measure
Debt-to-income is a ratio comparing monthly debt payments to gross monthly income, expressed as a percentage.
Lenders use it to assess borrowing risk: Her debt-to-income ratio was too high to qualify for the mortgage.
A lower ratio indicates more financial flexibility.
Often abbreviated DTI.
Secured home loan
- preapprovalAuthorization before final commitment
- qualificationRequired skill or condition
- underwritingRisk evaluation and acceptance
- lenderOne who loans money
loan · creditworthiness · borrower · approval · application · FHA · conventional · refinance
Proportion out of hundred
- formulaFixed method or notation
- ratioComparative numerical relation
- obligationsRequired responsibilities
- liabilitiesAmounts owed to others
monthly payments · numerator · denominator · front-end · back-end · alimony · child support · minimum payments
Maximum allowed extent
- capCovering for top
- maximumGreatest permitted quantity
- benchmarkStandard for comparison
- cutoffPoint of termination
standard · acceptable · high · low · ideal · target · ceiling · qualifying
Borrowed capital for amplified returns
- burdenOppressive weight or duty
- stressPressure, mental or vocal
- sustainabilityCapacity to endure indefinitely
- balanceSteadiness or amount owed
budgeting · cash flow · solvency · overcommitment · financial stability · spending power · risk assessment · creditworthiness
mortgage
Secured home loan
- preapprovalAuthorization before final commitment
- qualificationRequired skill or condition
- underwritingRisk evaluation and acceptance
lender · loan · creditworthiness · borrower · approval · application · FHA · conventional · refinance · homebuyer
percentage
Proportion out of hundred
- formulaFixed method or notation
- ratioComparative numerical relation
- obligationsRequired responsibilities
monthly payments · liabilities · numerator · denominator · front-end · back-end · alimony · child support · minimum payments · student loans
limit
Maximum allowed extent
cutoff · standard · acceptable · high · low · ideal · target · ceiling · qualifying · conforming
leverage
Borrowed capital for amplified returns
- burdenOppressive weight or duty
- stressPressure, mental or vocal
- sustainabilityCapacity to endure indefinitely
balance · budgeting · cash flow · solvency · overcommitment · financial stability · spending power · risk assessment · creditworthiness · fiscal responsibility
- credit scorescredit score, credit report, credit history, credit bureau, FICO score
- ratiosratio, proportion, fraction, percent, percentage
- lendingloans, borrower, approval, lenders, bank loan
- auto loansauto loan, car loan, loan amount, loan term, monthly payment
- business mathmarkup, markdown, discount, profit, margin
- loan termsunsecured loans, interest rate, loan term, short-term, secured loans
debt-to-incomenet worth
Assets less debts
savings rate · solvency · debt-free · net asset value · cash reserves
debt-to-incomefinancial freedom
solvency · creditworthiness · financial cushion · surplus · fiscal health
debt, debts, debtor, debtors, indebted, indebtedness, income, incomes