Definition of "What is an overall debt ratio?"

Liz  Dawes real estate agent

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Liz Daweselite badge icon

eXp Realty, LLC- Dawes Team

An overall debt ratio is the percentage of your overall debt (housing payments plus any other long-term debt) to your monthly gross income. Lenders use this ratio-sometimes called the back-end ratio-to see whether you qualify for a loan. Common overall debt ratios are 33 or 36 percent.

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