SIGN IN YOUR ACCOUNT TO HAVE ACCESS TO DIFFERENT FEATURES

FORGOT YOUR PASSWORD?

FORGOT YOUR DETAILS?

AAH, WAIT, I REMEMBER NOW!

Total Integration Fitness

Total Integration Fitness

Training the WHOLE you.

T (662) 574-3368
Email: Tony@totalintegrationfitness.com

Total Integration Fitness
Jacksonville, FL US

Open in Google Maps
QUESTIONS? CALL: 0900 800 900
  • LOGIN
  • Home
  • Our Services
    • Financial Coaching
    • Fitness Coaching
  • Blog & Stories
  • Videos & Media
  • Contact Us
FREEQUOTE
  • Home
  • Posts tagged "home loan"
May 19, 2022

Tag: home loan

What is a Debt-to-Income Ratio???

Monday, 06 January 2020 by Tony Carter
What is a Debt to Income Ratio and why is it important?  A couple of days ago I posted a debt to income(DTI) ratio formula illustration on Instagram.(Follow me @Koach_Carter)
Then it occurred to me that I may need to go more in depth about DTIs, what is considered a good or bad ratio, and why it is important.
A DTI is a combination of your monthly debt(such as loan payments, credit card payments, etc,) divided by your total gross monthly income.
Ex. (Total monthly bills $1,000/Gross Monthly Income $2,500)=.40 or 40% DTI
Debt to income 2
Why is this important? It shows the lender two things.  Firstly, it provides a snapshot of how you are currently handling your debt. Secondly, is shows if you can afford or have the capacity to pay for the debt that you are applying for.
The current maximum DTI is 43% to qualify for a mortgage.  This is still considered to be high risk. Ideally, you would want your DTI to be 36% or less, according to Wells Fargo.
The max threshold is slightly higher for mortgage loan approval. Generally, the maximum DTI for an auto loan is 36%.
It is always best to self underwrite and know where you stand before applying for credit.  That way you know if it is a good time for you to apply or not.  You will also know if you are in a position to not only be approved, but negotiate a good interest rate.
We hope this information will help you with your next auto or home purchase.
auto loandebt freedebt to incomehome loanpersonal financesaving
Read more
  • Published in Auto, Business, Finance, personal finance
No Comments

Recent Posts

  • What’s a Legacy Drawer? Why you should have one and what to keep in it.

    What’s a Legacy Drawer? Simply put, it is...
  • 5 Tips to Help You Save Money

    Have you had trouble saving money or are having...
  • What is a Financial Coach?

    What exactly is a financial coach and what exac...
  • 5 Precautions to Take when Returning to the Gym after Covid-19 Quarantine

    At the time of writing this, things are looseni...
  • Blurred Lines- 5 Tips for Working from Home

    A few years ago, the singer, Robin Thicke came ...

Recent Comments

    Categories

    • Auto
    • Business
    • Finance
    • Fitness
    • Health
    • Interview
    • Parenthood
    • personal finance
    • real estate
    • Uncategorized
    • video

    Recent Posts

    • What’s a Legacy Drawer? Why you should have one and what to keep in it.

      What’s a Legacy Drawer? Simply put, it is...
    • 5 Tips to Help You Save Money

      Have you had trouble saving money or are having...
    • What is a Financial Coach?

      What exactly is a financial coach and what exac...
    • 5 Precautions to Take when Returning to the Gym after Covid-19 Quarantine

      At the time of writing this, things are looseni...
    • Blurred Lines- 5 Tips for Working from Home

      A few years ago, the singer, Robin Thicke came ...

    GET IN TOUCH

    T: 662-574-3368
    Email: Tony@totalintegrationfitness.com

    T.A. Carter Enterprises, LLC
    Jacksonville, FL

    • GET SOCIAL
    Total Integration Fitness

    © 2015 T.A. Carter Enterprises, LLC | Designed by Style The Word.

    TOP