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Serendipity
Summer!
Member since 4/07 7631 total posts
Name:
PrayingWishingHopingALOT
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Debt to Income Ratio:
does it go by monthly net or gross?
ETA: Do the banks include utilities when calculating DTI? Like how would they know what you heating/ electric / phone etc would be on your NEW purchase? Do they go by your current payments? Im confused?
Message edited 3/17/2011 5:20:10 PM.
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Posted 3/17/11 5:05 PM  |
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livdrl112
LIF Infant
Member since 1/11 348 total posts
Name:
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Re: Debt to Income Ratio:
The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her net effective income (FHA/VA loans) or gross monthly income (conventional loans)
That is Motley Fool's definition of debt to income ratio. If I remember it correctly, they only looked at the average balance on your credit card, the amt of mortgage you are asking for, monthly car payments etc.
HTH
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| Posted 3/17/11 7:47 PM |
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charon54
My two boys!
Member since 5/05 7279 total posts
Name:
Rebecca
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Re: Debt to Income Ratio:
DTI goes by gross income. Utilities are not included in the calculation. Though it is something you should be considering.
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| Posted 3/17/11 9:12 PM |
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