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What is Total Debt Service (TDS)?

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Sam Site Admin Joined: 21 May 2005 Posts: 281 Location: CALIFORNIA 117.49 Dollars($)	Posted: Fri Apr 09, 2004 2:18 am    Post subject: What is Total Debt Service (TDS)? Total Debt Service (TDS) is a standard calculation performed by the mortgage lenders to determine if a borrower qualifies for a specific loan type. It is calculated by dividing the individual's total monthly commitments (that is, the monthly payment of the loan plus any other current commitments) to the individual's gross monthly income and then multiplying by 100. A favorable TDS ratio is 40% and under. For example, Suppose Total monthly commitments = $20,000 and Gross monthly income = $80,000 Therefore, TDS = ($20,000 / $80,000) * 100 TDS = 25% Related Article Gross Monthly Income Monthly Income

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