Your debt-to-income ratio is a key factor in determining
your ability to qualify for a mortgage. It's a measure
of how much you owe each month compared to how much you
earn. To calculate your debt-to-income ratio, you'll
need to add up all of your monthly debt payments (such
as your estimated mortgage, credit cards, student loans,
and car loans, etc.) and divide that by your gross
monthly income. The resulting percentage is your
debt-to-income ratio.
Most lenders prefer to see a debt-to-income ratio of
below 43%, but there are some programs that allow for
higher ratios. If your debt-to-income ratio is too high,
it may be challenging to qualify for a mortgage or to
secure favorable loan terms.
Our team can help you calculate your debt-to-income
ratio and provide guidance on which loan programs you
may qualify for based on your ratio. It's essential to
keep your debt-to-income ratio in check, as it's a
critical factor in determining your financial health and
your ability to repay a mortgage.