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What is a debt-to-income ratio? A debt-to-income, or DTI, ratio is derived by dividing your monthly debt payments by your monthly gross income. The ratio is expressed as a percentage, and lenders.
Your debt-to-income ratio is exactly what it sounds like: the ratio of the amount of debt you have compared to your income. And it can be a very important number when lenders are determining your eligibility for a loan.
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Your ability to repay the loan. This requirement basically asks, “Is your income enough to cover the new mortgage payment and all your other monthly expenses?”
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