Answer for "What is an overall debt ratio?"

Lisa Helms Crabtree real estate agent
  EXP Realty LLC

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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