Posted on: 11th Aug, 2010 10:54 am
I am applying for a mortgage and want to know what a debt to income ratio is, DTI number, and what I need to know to get my mortgage and not have a bad debt to income.
DEBT TO INCOME RATIO is the amount of debt you incur on a monthly basis vs you monthly income. You don't want your monthly payments including your new mortgage payment to exceed 50% (and that's on the high side). Lenders preferably like it below 48%.
Does anyone long for the days when you got by with a 64.9% back ratio? Good ol' LP & DU used to eat those up if your credit was decent enough. Decent - that's right...you didn't have to have a 700 score - just pretty decent credit, pretty decent down payment, and enough income to squeeze in under 65%.
Wow...wonder what percentage of those loans ended up in the foreclosure bin.
Wow...wonder what percentage of those loans ended up in the foreclosure bin.
