DTI stands for debt-to-income ratio, also referred to as back-end ratio. It shows how much of your gross monthly income is needed to cover all your debt obligations. Follow these steps to determine your approximate DTI:
- Add up all of your monthly debt payments (including your mortgage, car loans, child support and alimony, credit cards, student loans, etc.)
- Divide this amount by your gross monthly income.
- Then multiply this amount by 100. This percentage is your DTI.
Please keep in mind that you must meet specific underwriting standards. The participating mortgage lender can help you better understand FICO credit score and DTI.