What is Debt-to-Income Ratio?
What is Debt-to-Income Ratio?
Debt-to-Income Ratio compares your gross income to your housing expenses.
Basically, mortgage plus property taxes plus insurance divided by gross income.
You will get a percentage like 30 percent. The lower the better. Most lending institutions have a cap on how high it can be. Try to keep it below 40 percent.
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