Question 1

What is debt-to-income (DTI) ratio?

Accepted Answer

DTI compares your monthly debt payments to your gross monthly income. Lenders use it to assess whether you can comfortably afford a new mortgage alongside existing obligations.

Question 2

What is a good DTI for a mortgage?

Accepted Answer

A total DTI of 36% or lower is often considered strong, and many conventional lenders prefer to stay near that range. FHA and other programs may accept higher ratios with compensating factors.

Question 3

What is the difference between housing ratio and total DTI?

Accepted Answer

Housing ratio (front-end DTI) includes only housing costs such as mortgage payment, taxes, and insurance. Total DTI (back-end) adds all other monthly debt payments to that housing cost.

Question 4

Which debts should I include in this calculator?

Accepted Answer

Include minimum monthly payments for mortgages or rent, car loans, student loans, credit cards, personal loans, and any other recurring debt. Use gross income before taxes.

Question 5

How can I improve my DTI before applying?

Accepted Answer

Pay down revolving balances, avoid new debt, increase income where possible, or consider a larger down payment to reduce your proposed housing payment. Even small reductions in monthly debt can help.

Debt-to-Income (DTI) Calculator

Debt-to-income breakdown

Frequently asked questions