What is Your Debt to Income Ratio?

Consumers who are interested in purchasing a home should understand their debt to income ratio. For many, this is a new term and one that they may not fully understand. The term is used primarily when purchasing a home for lenders to determine the maximum payment you may afford. Calculating income Your income is calculated on a gross basis, the amount you earn prior to taxes. Income from all sources should be considered if they are stable. In addition to your weekly payche...
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