Posted on: 02nd Nov, 2010 08:08 pm
What exactly does a lender look at when calculating monthly debt ratio? Does that include daycare, utilities, etc. or just actual loan-type payments?
Hi Guest,
You will have to add your total net monthly income. This will include your monthly wages and any overtime, commissions or bonuses that are guaranteed; plus alimony payment received, if applicable. You will also have to include any monies that you receive from rentals or any other additional income.
Once this is done, you will have to add up your monthly debt obligations which will include your credit card bills, loan and mortgage payments. Make sure to include your monthly rent payments if you rent.
Once you do this, you will have to divide your total monthly debt obligations by your total monthly income. This will let you know your debt-to-income ratio.
Thanks
You will have to add your total net monthly income. This will include your monthly wages and any overtime, commissions or bonuses that are guaranteed; plus alimony payment received, if applicable. You will also have to include any monies that you receive from rentals or any other additional income.
Once this is done, you will have to add up your monthly debt obligations which will include your credit card bills, loan and mortgage payments. Make sure to include your monthly rent payments if you rent.
Once you do this, you will have to divide your total monthly debt obligations by your total monthly income. This will let you know your debt-to-income ratio.
Thanks