Used to qualify a borrower for a mortgage. It is the ratio of total housing payment plus installment minimum payments and other loan/lease payments divided by gross monthly income.
Ratio of monthly housing costs (principal, insurance, taxes and interest) plus regular monthly payments to gross monthly income used by lenders to evaluate an applicant qualification for a loan. Lenders will typically allow a back ratio between 32 and 45 percent.
PITI + All reoccurring monthly debt/GMI. A number used to determine part of the qualifying process. On a conventional conforming loan, this number should not exceed 38%. These guidelines are not set in stone and may vary depending on your personal financial situation.
a borrower’s debt-to-income ratio, expressed as a percentage, calculated by adding the new mortgage payment (including principal, interest, taxes, and insurance) and rental or consumer credit obligations divided by gross monthly income.