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Mortgage

Debt-to-Income Ratio

Definition

A borrower's total monthly debt payments divided by gross monthly income, a primary underwriting metric.

Example

At $9,200 of monthly income and $3,500 of obligations, the borrower's DTI was 38%.

Frequently asked questions

What does Debt-to-Income Ratio mean in real estate?

A borrower's total monthly debt payments divided by gross monthly income, a primary underwriting metric.

How is Debt-to-Income Ratio used in practice?

At $9,200 of monthly income and $3,500 of obligations, the borrower's DTI was 38%.

This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.