The percentage of your earnings that are used to pay your debt every month

The relationship between your monthly income and your monthly debt payments; this is used as an indicator to determine your financial capability to handle additional debt.

The percentage of gross annual income required to cover payments associated with housing (mortgage principal and interest, taxes and secondary financing). Most lenders prefer that the DTI be no more than 45%.

A borrower's monthly payment obligation on long-term debts divided by gross monthly income, expressed as a percentage. The DTI ratio consists of two separate calculations: a monthly housing expense to income ratio and a total obligations to income ratio.

The ratio percentage of an individual's monthly income that will be needed to pay for all monthly expenses including principal, interest, tax and insurance (PITI).

A person’s income divided by their debt. Used as a measure of leverage to show the ability to repay obligations.

Measures your future monthly housing expenses and monthly debts (monthly car payments, monthly credit card payments, and other monthly loan payments such as student loans) in relation to your monthly income. Lenders generally figure you shouldn't spend more than about 33 to 40 percent of your monthly income on housing expenses. Your Loan Officer can estimate your D/I ratio for you.

A formula used by banks to determine whether or not a consumer can afford the loan for which he or she applied. Without taking other outstanding debts into consideration, a general rule is that an auto loan should not exceed one week’s gross income.

The ratio of a borrowers outstanding debt as a percentage of their complete total gross income.

The percentage of a loan applicant's (monthly) income that is used to meet debt obligations. Many alternative loan programs use this calculation to determine an applicant's eligibility for a loan program.

The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her net effective income (FHA/VA loans) or gross monthly income (Conventional loans). See Housing Expenses-to-Income Ratio.

Total outstanding debt as a portion of total income. Used by lenders as a measure of credit worthiness.

The ratio of a borrower's total debt as a percentage of their total gross income.

The total of your monthly payments divided by your gross monthly income. An important factor for creditors in determining your credit worthiness. Generally, creditors look for a debt ratio of 38% or below. A debt ratio of 45% can indicate to creditors that you're overextended.

Actually two variations on the ratio of a borrower's debt to income. The front-end ratio is the borrower's total monthly housing cost (principal, interest, real estate tax, hazard insurance) divided by total gross monthly income. The back-end ratio is the borrower's total monthly payments (housing cost plus all monthly payments for auto, credit cards and any other debt) divided by total gross monthly income. Debt to income ratios are very important in determining your eligibility for a particular loan. For most sub-prime (imperfect credit) loans, the back end ratio is the only ratio considered.

An indicator representing the percentage of the applicant's monthly income versus income that can be used to meet current or future debt obligations. This is calculated by comparing the applicant's Debt to their Income. It is one factor in determining eligibility for various loan programs. Your mortgage payment is factored into your debt to income ratio and this calculation is what determines whether you qualify for any particular loan.

Most mortgage lenders use this ratio to analyze your financial well-being. It is figured by using your monthly debt divided by your monthly income. The lower the percentage the better your financial picture. This is often referred to as credit worthiness.

The percentage of monthly income that is devoted to paying off unsecured debts, not counting mortgages, etc. High Debt/Income ratios (25% and up) imply a bad credit rating and can make getting a loan or additional credit unlikely. The actual ratio is the total monthly-unsecured debt payments divided by monthly net income multiplied by 100. Some creditors consider gross monthly income instead, so it helps to know the Debt/Income ratio for both figures.

Ratio comparing total monthly obligations, including home loan payments, to total monthly gross income.

Compares the amount of monthly income to the amount the borrower will owe each month in house payment (PITI) plus other debts. The other debts may include but not limited to car payment, credit cards, alimony, child support, and personal loans. This ratio is commonly used to see if the borrower has the capacity to repay the debt.

The ratio is expressed as a percentage which results when a borrowers payment obligations on long term debts is divided by the borrowers effective income. This is calculated on a net income for FHA, VA mortgages and on a gross income basis for conventional mortgages. (also referred to as housing expenses to income ratios).

An indicator of the borrower's ability to take on debt, this ratio is the relationship between your monthly income before taxes and the amount of your minimum monthly debt payments.

Also known as debt ratio. Divide total of monthly debt payments to gross monthly income. Another popular real estate investing term with lenders.

Long term debt expenses as a percentage of monthly income. Lenders use this ratio to qualify borrowers for mortgage loans.

ratio, expressed as a percentage, that results from dividing a borrower's monthly payment obligation on long term debts by the borrower's gross monthly income

A personal-finance measure that compares an individual's debt payments to the income he or she generates. This measure is important in the lending industry as it gives lenders an idea of how likely they will receive payments from the borrower.

measures how much you can borrow based on your proposed mortgage payments, property taxes and insurance in relation to your total monthly income. Lenders experience shows that you may borrow from 33% to 40% of your monthly income.

Percentage of borrowers gross monthly income divided by their outstanding debts.

the ratio of your total required monthly housing payment to your gross income.

Ratios used to qualify a borrower by comparing the borrower's total monthly housing expense and total monthly debt to gross income.

The ratio of a borrowers total of debt as a percentage of their total gross income.