Posted on Nov 29, 2018

Achieve Finance

How To Figure Debt To Income Ratio?

Debt-to-income ratio is financially crucial and you’ve to figure it out. Most especially if you want to take out a loan. Lenders are often strict with the DTI ratio.

To get your loan approved, maintain a low DTI ratio. If yours is high, this article will teach how to lower it so that you can achieve your goals.

Let’s discuss how to calculate your debt-to-income ratio.
What is an ideal debt-to-income ratio?

Most lenders agree to an ideal DTI ratio. For them, an ideal front-end ratio should be 28% or lower. And the back-end ratio –which includes all expenses-, should not be above 36%.

Nevertheless, lenders may accept higher ratios as often it depends on your credit score, assets, savings, down payment, and the type of loan.
Get quote
Message sent. We'll get back to you soon.