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Debt-to-Income Ratio
(redirected from Debt-to-Income)

   Also found in: Wikipedia 0.01 sec.
Debt-to-Income Ratio
The amount of an individual or company's gross income that it spends on debt service as a percentage of its total gross income. The higher the DTI is, the less likely it is that the individual or company will be able to repay debt. As a result, financial institutions use the DTI in informing decisions on whether or not to make loans. Often, the "debt" in the term refers to all liability payments (such as employee wages, taxes, and utility bills) and not simply to debt.


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You need to keep your debt-to-income ratio down to around 30 percent at the most in order for lenders to look towards you favorably.
5, 2010 /PRNewswire-USNewswire/ -- The Hispanic Leadership Fund today testified in front of the Department of Education in response to the proposed Gainful Employment rule that will deny financial aid to students who wish to attend career colleges if they don't meet an arbitrary debt-to-income ratio after they graduate.
Another factor that could be important in determining if you can obtain a good mortgage refinance package if your debt-to-income ratio; the lower your ratio is, the better it would appear to the lender.
 
 
 
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