Understand Your Financial Health Before You Buy or Refinance a Home
Your Debt-to-Income (DTI) ratio is one of the most important factors lenders consider when evaluating your ability to qualify for a loan. A lower DTI indicates better financial stability and a higher likelihood of mortgage approval.
✅ What Is DTI?
Your DTI compares your monthly debt payments to your gross monthly income (before taxes). It helps determine how much of your income is going toward paying off debts—and how much you can comfortably borrow.
📌 Why It Matters
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Below 36%: Excellent — You’re in a strong position to apply for a mortgage or refinance.
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36–43%: Acceptable — You may qualify for most conventional or FHA loans.
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Above 43%: Risky — Consider reducing debt or increasing income before applying.
🧾 DTI Formula
DTI=(Total Monthly Debt PaymentsGross Monthly Income)×100
💡 DTI Calculator
Step 1: Enter Your Gross Monthly Income
(before taxes and deductions)
Step 2: Add Your Monthly Debt Payments
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Mortgage or rent
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Auto loans
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Student loans
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Credit card minimums
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Personal loans
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Alimony/child support (if applicable)
Example:
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Income: $6,000
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Mortgage: $1,800
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Car Loan: $400
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Credit Cards: $200
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Student Loan: $300
Your DTI:
(1,800+400+200+3006,000)×100=45%
💬 Need Help Understanding Your Results?
As an experienced real estate broker and financial strategist, I can help you assess your current financial picture and plan your next steps—whether you're buying your first home, refinancing, or investing.
📞 Contact me today for a free consultation.