Do I need to know my debt-to-income ratio?

You need to know this number if you're going for a mortgage. Your debt-to-income ratio (DTI) is a personal finance measure that compares the amount of debt you have to your gross income. You can calculate your debt-to-income ratio by dividing your total recurring monthly debt by your gross monthly income

What is debt-to-income ratio (DTI)?

Lenders have different DTI requirements. Personal loan companies may allow higher DTIs than mortgage lenders. Debt-to-income ratio divides your total monthly debt payments by your gross monthly income, giving you a percentage. Here’s what to know about DTI and how to calculate it.

What is a debt-to-income ratio?

A debt-to-income ratio is the percentage of gross monthly income that goes toward paying debts and is used by lenders to measure your ability to manage monthly payments and repay the money borrowed. There are two kinds of DTI ratios — front-end and back-end — which are typically shown as a percentage like 36/43.