Debt-to-Income or DTI Ratio
2015/02/08 13:44DTI
Debt-to-Income or DTI ratio is one of the measurements lender uses to gauge the affordability of a loan to the borrower. It is to compare the monthly housing expenses (mortgage, tax, HOA dues, insurance, etc.) to the monthly gross income (pre-tax) of the borrower. A healthy and manageable DTI ratio should be in the range of 40-45%.