If you’re in the market for a loan, chances are that lenders are going to assess something called your “DTI” – also known as your Debt-to-Income ratio. What Exactly is... read more →
Are you looking for a mortgage or a car loan? If so, be prepared for a lender to pull your credit report and calculate your debt-to-income ratio.
Your debt-to-income ratio, or DTI, as some lenders call it for short, is expressed as a percentage of your monthly bills compared to your monthly income. Some lenders will compare your monthly obligations to your net, or take home pay. Others will look at your bills in comparison to your gross income (i.e., your salary before taxes and other payroll deductions are taken out of your check).
Getting a loan or obtaining new credit when you’re already... read more →
