Advertisement

Advertisement banner

Advertisement

Advertisement banner

Advertisement

Advertisement banner
Satindra Chauhan's avatar
May 9, 2023•education

What is Debt-to-Income ratio mean and how we calculate it ?

1 Answers
React

G
@7966•May 8, 2023

Debt-to-Income Ratio (DTI) can be defined as a person's monthly debts which then can be divided by the person's gross monthly income. It is said that the optimum DTI of someone should be at or lower than 43%. The general rule is that the lower the DTI, the better. Usually, DTI is calculated by the people who lend you money. DTI holds a lot of importance to investors specially because they are the ones whose businesses could be at risk in case the DTI is at a higher rate.

Hope this is what you were looking for.

Image Courtesy: Google

How Your Debt-to-Income Ratio Can Affect Your Mortgage

0
React