What is your Debt To Income Ratio (DTI) When Applying for a Mortgage Loan

Managing Real Estate Broker with Maxus Realty Group of Samson Properties Broker - Realtor - CEO

Maxus Realty Group Agents are local specialists with knowledge to help you buy and sell the right home, at the right price.

We are passionate about you as a client, we will always protect your best interests just because it's the only way we do business day in and day out.

Today, we'll talk about What is your Debt To Income Ratio (DTI)  When Applying for a Mortgage Loan



When applying  for a new mortgage, your DTI ratio will play an important role to help determine how much you can borrow.

This blog post will help you calculate your own DTI. This will be useful to you as well as to help determine if applying for a new loan is the best idea for your budget. 

DTI is a financial term for debt to income ratio.

Your debt to income ratio is calculated using 2 parts: the front end ratio and the back end ratio.

The front end ratio is the amount of your monthly income that will go towards the mortgage and other housing expenses. It is the amount that is left after your income has gone towards these expenses.

Calculate the front-end ratio by doing the following steps:

Add all your total housing expenses, including your mortgage, property taxes, insurance and any HOA dues, and divide it by your gross monthly income.

Multiply  that number by 100 to find the front-end ratio. 


For example,


READ MORE: https://www.maxusrealtygroup.com/blog/2954/What+Is+Your+Debt+To+Income+Ratio+%28dti%29+When+Applying+For+A+Mortgage+Loan

???Thinking of selling your home? Let Fernando take over the marketing of your property with our unique 99 STEPS system 
www.reallynicehomes.com/sell  - Call or text 240-426-5754 for more

Comments (4)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Fernando Herboso - Associate Broker MD, & VA very good helpful report about what is dept to income ratio (DTI) when applying for a mortgage loan.

Jul 13, 2022 04:47 PM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Good to know!  Thank you for sharing this helpful information!  

Jul 14, 2022 09:36 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

This calculation will definitely be useful when someone is thinking about buying a home!  Great information. 

Jul 14, 2022 02:46 PM
RPDFW @ Salas Home Team
Realty Preferred DFW - Plano, TX
#1 Team in Real Estate Specialty Services

Great article, Fernando. It's always good to have this type of knowledge.

Jul 29, 2022 09:09 AM