🔑 Welcome to Term Tuesday with Carol Vanlandingham! 🌟 Making real estate terms fun and easy to understand. Today, we're diving into 📊 Debt-to-Income (DTI) Ratio!
🏠 What is DTI Ratio?
The Debt-to-Income, or DTI, ratio is a crucial number used by mortgage lenders to determine affordability. It's calculated by adding up all your debt expenses, including your monthly housing payment, then dividing by your gross monthly income, and multiplying by 100. 📈
📉 Why DTI Ratio Matters
This ratio helps lenders figure out how much you can afford to pay monthly for a mortgage based on their available loan programs. Typically, lenders look for borrowers who spend 28% or less of their total monthly income on housing and less than 36% on debt payments.
💡 Pro Tip: Knowing your DTI ratio can help you plan better and make informed decisions about your finances. It’s a key factor in getting approved for a mortgage. If your percentages are on the higher side and you want to buy a home, you might need to adjust your budget. 💰
📬 Have More Questions?
Got more questions about DTI ratios or other real estate terms? Drop them in the comments below!
👍 Thanks for joining me on Term Tuesday. Don't forget to like, subscribe, and hit the bell 🔔 for more real estate tips! See you next time! 🏡
17 сен 2024
