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What is a debt-to-income ratio?

CreditWarren Team

Quick answer

Debt-to-income (DTI) is total monthly debt payments divided by gross monthly income. Most lenders cap mortgage DTI at 43%; 36% or lower is considered healthy. Used to evaluate whether you can take on new debt.

DTI ratio tiers from healthy to risky.
DTI ratio tiers from healthy to risky.

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