What is a Debt-to-Income Ratio?

Lenders look at your debt-to-income ratio when they are
considering if you are credit-worthy.

 Your debt-to-income ratio is calculated by dividing monthly minimum debt payments, including your proposed mortgage payment by your monthly gross income.
 
For example, a couple with a combined monthly gross income of $7,500 making minimum payments of $800 on loans and credit cards, that has a proposed mortgage payment of $2300 has a debt-to-income ratio of 41% ($800+$2300/$7500 = .41).