debt-to-income ratio
Loan qualification calculation
Debt-to-income ratio is a financial measure comparing how much you owe each month to how much you earn, expressed as a percentage.
Lenders use it to assess whether you can handle additional debt: Her debt-to-income ratio was too high to qualify for a mortgage.
A lower ratio suggests more financial breathing room.
Often abbreviated DTI.
- credit checkExamination of payment history
- underwritingRisk evaluation and acceptance
- percentageProportion out of hundred
- mortgageSecured home loan
- take home payEarnings after all deductions
creditworthiness · expenses · liabilities · debt load · calculation · threshold · affordability · house poor · monthly payments · repayment terms · debt consolidation · formula · budgeting · interest rate · financial stability · savings · benchmark · credit risk
- debtdebt, creditor, owe, debtor, lender
- mortgagesfixed-rate mortgage, mortgage broker, adjustable-rate mortgage, mortgage payment, mortgage insurance
- auto loansauto loan, car loan, loan amount, loan term, monthly payment
- loan termsunsecured loans, interest rate, loan term, short-term, secured loans
- mortgage reliefloan modification, loan restructuring, forbearance, mortgage assistance, mortgage relief
- underwritingunderwriting, underwriter, eligibility criteria, conditional approval, policy limits
debt-to-income ratiosavings rate
Percentage of income saved
net worth · financial freedom · financial independence · cash reserves · financial cushion