Debt-to-Income Ratio


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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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Say you have solid credit scores and money in the bank but because of student loans or uninsured medical bills, your debt-to-income ratio exceeds the maximum that federal rules generally prescribe.
'Near-miss' buyers trying 'non-QM' market
While the debt-to-income ratio may be an indicator of household financial stress, Chairman Greenspan also pointed out that the ratio reflects a rise in home ownership, improved information technology that enables lenders to reach more households, and increased home equity loans resulting from home price appreciation.
Household saving and debt
Students have the right to choose the education and career path that they will pursue, and not have it restricted by arbitrary debt-to-income ratios.
The Hispanic Leadership Fund Asks ED to Reconsider Gainful Employment
Others eligible for the program include residents who have funds for closing costs but whose debt-to-income ratio is too high, and those who have money for closing costs but want money to buy appliances and other move-in necessities.
BRIEFLY AREA CITIES REPORT POPULATION GAINS
Figure 3 combines information from the Federal Reserve's Survey of Consumer Finances (SCF) on the distribution of household debt with our estimates from the flow of funds accounts on the debt-to-income ratio of the U.
Statement by Lawrence B. Lindsey, Member, Board of Governors of the Federal Reserve System, before the Committee on Banking and Financial Services, U.S. House of Representatives, September 12, 1996
His Social Security number was listed on my credit report and, although he was paying all of his bills on time, this gave me a higher debt-to-income ratio according to the loan officer.
Fair credit reporting act tweaked by congress: legislation gets a new name and a facelift
It's not a perfect formula, but figuring out your debt-to-income ratio will give you some idea of where your money is going.
Living well with the money you have: author and syndicated columnist offers straightforward financial advice for people looking to take control of their money
When Renee Taylor (not her real name) of Fayetteville, North Carolina, and her husband were shopping for a home 10 years ago, a mortgage officer at the now-defunct Home Federal Savings & Loan Bank suggested Taylor voluntarily give up her 1985 Nissan Sentra to lower her debt-to-income ratio.
The repo man cometh: the real deal on vehicle repossessions
Consolidation can help people with their debt-to-income ratio if they need to go under the scrutiny of any kind of lending institution," he says.
Managing your student loan debt: with the right approach, paying for college can be less of a burden. (Personal Finance)
The introduction and very active promotion of a new product -- called the Neighborhood Homebuyers Mortgage -- which requires only a 5 percent downpayment and allows applicants a higher debt-to-income ratio than that permitted by standard risk criteria.
CHEMICAL BANK MAKES AVAILABLE ITS HOME MORTGAGE DISCLOSURE ACT REPORT FOR 1991
And, my debt-to-income ratio is higher than those profiled, particularly since I am just starting down the road to financial health and well-being at 28 years old.
Message of hope. (Letters)
Before you co-sign for anyone, insist that they calculate their debt-to-income ratio (see formula below), since it's a good indicator of whether they have debt problems.
Thinking of co-signing for someone?

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