This calculator is for your use only. We do not collect the information you
provide for any reason.
Use this calculator to determine your debt to income
ratio. Generally speaking, a debt ratio greater than or equal to 40%
indicates you are not a good risk for lending money to.
Debt-To-Income (DTI) ratios are used to determine how much of a burden a borrower
may be taking on including the existing minimum credit account payments, the new
payments of the home loan, plus the monthly portion of taxes and homeowners' insurance
Generally speaking, the higher the DTI ratios, the more burden the borrower is
applying for, and the riskier it is to the lender that the borrower may at some point
fail to consistently make all of their payments. Higher DTI ratios frequently result
either in restrictions upon the loan amounts offered by the lenders, or a higher interest
rate priced to compensate the lender for the risks, or even both.
In some cases, unverifiable income may be considered with alternative-documentation
loan programs in order to reflect a truer, lower DTI ratio than a borrower may otherwise
be presenting to the lender in their application file.
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