What is debt-to-income ratio, and why does it matter?
Your debt-to-income ratio (DTI) is the share of your gross monthly income that goes to debt payments. Lenders use it to judge how much you can comfortably borrow — lower is better, and many programs look for a DTI under roughly 43%–50%.
Your debt-to-income ratio — DTI — is simply your total monthly debt payments divided by your gross monthly income, shown as a percentage. Lenders use it to gauge how much room you have for a mortgage payment.
Lower is better. Many loan programs look for a DTI under roughly 43%, though some allow higher with strong credit or reserves. If yours is high, paying down a card or loan before applying can open up more buying power. A lender can calculate yours in minutes — and I'll help you see what it means for the homes we tour.
This answer is general education, not legal, tax, or financial advice. Your situation is unique — let's talk through the specifics together.