How to calculate your DTI
Introduction - I’m Kiel Ecimovic, NMLS #943966. I’m a Licensed Mortgage Loan Originator, Edge Home Finance Corporation, Company NMLS 891464. If you need a home loan in Florida or any state aside from New York (that may change), I can help you. My job is to make your life easier throughout the home financing process.
Some of the services I offer include but are not limited to: home loans; home equity lines of credit (HELOC); refinance; cash-out refinance; VA loans; FHA; Conventional; Investment Property Loans; DSCR loans; and more. I can offer a very wide variety of loan products, as a broker, I can shop around for you and get you the best deal possible.
It’s something that sets me apart from the big banks - as a broker, I work with many different lenders, giving you the absolute best choices out there when it comes to saving you money and doing what makes the most sense for you and your family. I look forward to being a part of your journey!
If there’s a specific home loan program you are interested in, feel free to send me an email and my team and I will help you: kiel.ecimovic@edgehomefinance.com.
FREE DOWNLOAD: HOW TO CALCULATE YOUR DTI - EASY GUIDE
How to Calculate Your Debt-to-Income-Ratio
Debt-to-income ratio is the percentage of your monthly gross income that goes toward paying debts.
Why is this important for you to know?
It’s one of the ways that lenders determine your borrowing risk, for things like a home loan.
If you have a low DTI, your chances of loan approval are higher than if you have a high DTI.
So, how exactly do you calculate your debt-to-income ratio?
Take all your monthly expenses payments, including monthly mortgage; rent or house payment; monthly alimony or child support payments; student, auto, and other monthly loan payments; credit card monthly payments (use the minimum payment); and other debts, then divide that total by your pre-tax income — that’s your DTI. You car insurance and utilities, for example, are exempt, even if you have yours reporting to the credit agencies.
Simply put, debt-to-income ratio = monthly expenses / gross income! (pre-deduction income)
Are you familiar with your DTI? Still not quite sure how to calculate it, or what should be included? Send me a message with all your questions! kiel.ecimovic@edgehomefinance.com.
