Debt-to-Income Ratio
Also known as DTI
The share of your monthly gross income that goes toward debt payments, used to judge affordability.
In plain English
DTI compares your total monthly debt payments (including your future mortgage) to your gross monthly income. Lenders generally want your DTI under 43%–50% to approve a mortgage, though the exact limit varies by loan program.
Your DTI is one of the biggest factors in how much you can actually borrow — paying down other debt before applying can meaningfully increase what you qualify for.
Where you'll run into it
Guides and tools on TheBuyingPath that cover debt-to-income ratio in context.
Related terms
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