Debt-to-income ratio, explained
What is debt-to-income ratio? Debt-to-income ratio — referred to as DTI — is the percentage of your monthly gross income that goes towards paying monthly debts. To calculate, add up your monthly debts and divide by your gross monthly income. E.g. $3500. (debt) ÷ $10,000. (gross monthly income) = 35% DTI. How does my DTI…