Posted on: 15th Feb, 2007 04:22 pm
how to calculate debt to income ratio, is there any formula that is used. Thanks
Hi Bill,
Debt to income ratio shows what percentage of your income you can spend on mortgage payments after all other expenses are met.
One example for you to give a clear idea;
Suppose your gross income (yearly) is $60,000 or $5,000 monthly and debt payments are about $1,500, then debt to income ratio is 30% ($1,500 / $5,000 = .3 x 100). The lower the percentage it is considered the better.
You can go through this page for other details related to debt to income ratios - http://www.mortgagefit.com/discuss/debt-incomeratio.html
Colin
Debt to income ratio shows what percentage of your income you can spend on mortgage payments after all other expenses are met.
One example for you to give a clear idea;
Suppose your gross income (yearly) is $60,000 or $5,000 monthly and debt payments are about $1,500, then debt to income ratio is 30% ($1,500 / $5,000 = .3 x 100). The lower the percentage it is considered the better.
You can go through this page for other details related to debt to income ratios - http://www.mortgagefit.com/discuss/debt-incomeratio.html
Colin
Hi Bill,
Welcome to Mortgagefit discussion board.
You can use this calculator to check the debt to income ratio that you currently have by putting in the values of all your payments and income sources.
Debt to Income Ratio Calculator - http://www.mortgagefit.com/calculators/diratio.html
Thanks
Blue
Welcome to Mortgagefit discussion board.
You can use this calculator to check the debt to income ratio that you currently have by putting in the values of all your payments and income sources.
Debt to Income Ratio Calculator - http://www.mortgagefit.com/calculators/diratio.html
Thanks
Blue