Debt To Income Ratio

Definition of "Debt-to-income ratio"

Rosanta  Vallone
Rosanta Vallone Fletcher Realty Services Inc

Ratio of monthly debt payments to monthly gross income. Lenders use a housing debt-to-income (DTI) ratio (house payment divided by monthly income) and a total DTI ratio (total debt payment including the house payment divided by monthly income) to determine whether a borrowers income qualifies a buyer for a mortgage.

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