Question 1

What is the debt-to-income ratio?

Accepted Answer

It's the percentage of your monthly income that goes toward debt payments. Lenders use it to assess your ability to repay loans.

Question 2

What is a good debt-to-income ratio?

Accepted Answer

Below 36% is considered good. 36-43% is acceptable. Above 43% may make loan approval difficult.

Question 3

What debts are included?

Accepted Answer

Mortgage, car loans, credit card minimum payments, student loans, and any other recurring monthly debt obligations.

Question 4

How can I improve my DTI ratio?

Accepted Answer

Pay off existing debts, increase income, avoid taking on new debt, or refinance to lower monthly payments.

Debt-to-Income Ratio Calculator