[{"data":1,"prerenderedAt":272},["ShallowReactive",2],{"term:debt-to-income-ratio":3},{"term":4,"related":259},{"id":5,"title":6,"body":7,"category":241,"description":242,"extension":243,"faq":244,"meta":245,"navigation":246,"path":247,"related":248,"seo":252,"stem":253,"takeaways":254,"__hash__":258},"terms\u002Fterms\u002Fdebt-to-income-ratio.md","Debt-to-Income Ratio (DTI)",{"type":8,"value":9,"toc":234},"minimark",[10,15,19,22,26,227,231],[11,12,14],"h2",{"id":13},"understanding-debt-to-income-ratio","Understanding Debt-to-Income Ratio",[16,17,18],"p",{},"Lenders use DTI to judge whether you can afford a new loan. It includes payments on mortgages or rent-like housing debt, car loans, student loans, and minimum credit card payments.",[16,20,21],{},"Many lenders look for a DTI of 36% or lower, though some loan programs allow higher ratios.",[11,23,25],{"id":24},"formula","Formula",[27,28,31],"span",{"className":29},[30],"katex-display",[27,32,35,79],{"className":33},[34],"katex",[27,36,39],{"className":37},[38],"katex-mathml",[40,41,44],"math",{"xmlns":42,"display":43},"http:\u002F\u002Fwww.w3.org\u002F1998\u002FMath\u002FMathML","block",[45,46,47,74],"semantics",{},[48,49,50,54,58,67,70],"mrow",{},[51,52,53],"mtext",{},"DTI",[55,56,57],"mo",{},"=",[59,60,61,64],"mfrac",{},[51,62,63],{},"Monthly debt payments",[51,65,66],{},"Gross monthly income",[55,68,69],{},"×",[71,72,73],"mn",{},"100",[75,76,78],"annotation",{"encoding":77},"application\u002Fx-tex","\\text{DTI} = \\frac{\\text{Monthly debt payments}}{\\text{Gross monthly income}} \\times 100",[27,80,84,113,217],{"className":81,"ariaHidden":83},[82],"katex-html","true",[27,85,88,93,101,106,110],{"className":86},[87],"base",[27,89],{"className":90,"style":92},[91],"strut","height:0.6833em;",[27,94,98],{"className":95},[96,97],"mord","text",[27,99,53],{"className":100},[96],[27,102],{"className":103,"style":105},[104],"mspace","margin-right:0.2778em;",[27,107,57],{"className":108},[109],"mrel",[27,111],{"className":112,"style":105},[104],[27,114,116,120,206,210,214],{"className":115},[87],[27,117],{"className":118,"style":119},[91],"height:2.2519em;vertical-align:-0.8804em;",[27,121,123,128,202],{"className":122},[96],[27,124],{"className":125},[126,127],"mopen","nulldelimiter",[27,129,131],{"className":130},[59],[27,132,136,193],{"className":133},[134,135],"vlist-t","vlist-t2",[27,137,140,188],{"className":138},[139],"vlist-r",[27,141,145,162,173],{"className":142,"style":144},[143],"vlist","height:1.3714em;",[27,146,148,153],{"style":147},"top:-2.314em;",[27,149],{"className":150,"style":152},[151],"pstrut","height:3em;",[27,154,156],{"className":155},[96],[27,157,159],{"className":158},[96,97],[27,160,66],{"className":161},[96],[27,163,165,168],{"style":164},"top:-3.23em;",[27,166],{"className":167,"style":152},[151],[27,169],{"className":170,"style":172},[171],"frac-line","border-bottom-width:0.04em;",[27,174,176,179],{"style":175},"top:-3.677em;",[27,177],{"className":178,"style":152},[151],[27,180,182],{"className":181},[96],[27,183,185],{"className":184},[96,97],[27,186,63],{"className":187},[96],[27,189,192],{"className":190},[191],"vlist-s","​",[27,194,196],{"className":195},[139],[27,197,200],{"className":198,"style":199},[143],"height:0.8804em;",[27,201],{},[27,203],{"className":204},[205,127],"mclose",[27,207],{"className":208,"style":209},[104],"margin-right:0.2222em;",[27,211,69],{"className":212},[213],"mbin",[27,215],{"className":216,"style":209},[104],[27,218,220,224],{"className":219},[87],[27,221],{"className":222,"style":223},[91],"height:0.6444em;",[27,225,73],{"className":226},[96],[11,228,230],{"id":229},"example","Example",[16,232,233],{},"$1,800 of monthly debt payments on a $6,000 gross monthly income gives a DTI of 30%.",{"title":235,"searchDepth":236,"depth":236,"links":237},"",2,[238,239,240],{"id":13,"depth":236,"text":14},{"id":24,"depth":236,"text":25},{"id":229,"depth":236,"text":230},"personal-finance","Your monthly debt payments divided by your gross monthly income.","md",[],{},true,"\u002Fterms\u002Fdebt-to-income-ratio",[249,250,251],"credit-score","mortgage","budget",{"title":6,"description":242},"terms\u002Fdebt-to-income-ratio",[255,256,257],"DTI compares debt payments with gross income.","Lower DTI improves your chances of loan approval.","Paying down debt or raising income lowers it.","QoHRm46cgJF9A-18ym8M0c6KLp1ZSLKG-ZQKGDdlX3k",[260,264,268],{"title":261,"description":262,"path":263},"Budget","A plan for how you will spend and save your income.","\u002Fterms\u002Fbudget",{"title":265,"description":266,"path":267},"Credit Score","A number that summarizes how likely you are to repay borrowed money, based on your credit history.","\u002Fterms\u002Fcredit-score",{"title":269,"description":270,"path":271},"Mortgage","A loan used to buy property, with the property itself as collateral.","\u002Fterms\u002Fmortgage",1793374004915]