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Most people don't understand how important a healthy debt to income ratio (DTI) is.
Time for a thread
Time for a thread
DTI is a personal finance measure that compares the amount of debt you have to your overall income.
Lenders, including issuers of mortgages, use it as a way to measure your ability to manage the payments you make each month and repay the money you have borrowed.
Lenders, including issuers of mortgages, use it as a way to measure your ability to manage the payments you make each month and repay the money you have borrowed.
A low debt-to-income ratio demonstrates a good balance between debt and income.
A high debt-to-income ratio signals that you may have too much debt for the income you have, and lenders view this as a signal that you would be unable to take on any additional obligations.
