2006-06-28 08:51:47 · 5 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Debt to income ratio means your total monthly debts divided by your gross monthly income. For example you have a house payment of 500.00 per month a car payment of 200.00 per month and a credit card of 15.00 per month and your gross monthly income is 2500.00 your debt to income is 28%. (715.00 divided by 2500.00 equals 28) Lenders like to see your total debt to income less than 40%.
2006-06-28 09:02:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The amount of monthly payments vs the monthly income
i.e. $2000.00 monthly debt vs $5000.00 icome= 40% DTI
2006-06-28 08:57:30 · answer #2 · answered by golferwhoworks 7 · 0⤊ 0⤋
you make 300 per week, your bills are 5000 a month,,,,,bad bad bad debt ratio, .....you make 300 per week you have bills totaling 800 per month, that might be doable if you do not eat to much, get the picture?
2006-06-28 08:57:28 · answer #3 · answered by Guy R 3 · 0⤊ 0⤋
The money you earn vs. the money owe.
ex. if you take home a $1000.00 and payout $ 1000.00 you are rated very high (risky)
2006-06-28 10:10:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I think you mean ratio and if so....check out this website
2006-06-28 08:59:15 · answer #5 · answered by JOHNSWORLD 2 · 0⤊ 0⤋