|
 |
| | | |
|
 |
|
Debt to Income
Debt-to-Income-Ratio = Monthly Fixed Expense*/Gross Monthly Income
| To calculate your debt-to-income-ratio divide your
monthly fixed expenses by
your gross monthly income. |
*Includes: monthly housing expenses, installment, credit balances with more than 10
months remaining, revolving credit with more than 10 months remaining, real estate loan
payments on non-income-producing property or negative cash flow on non-owner-occupied
property, alimony, child support or maintenance. |
| Debt-to-income-ratio is usually expressed as a
percentage. As a basic guideline, your total debt expense should be no greater than
36% of monthly gross income. |
|
|
|
|
|
