Understanding Your Debt-to-Income (DTI)

Understanding Your Debt-to-Income (DTI) Ratio This is going to blow your mind… Your financial future hinges on one little number- the DTI ratio. The Debt-to-Income, or DTI ratio, is like your financial report card. It tells lenders how well you can handle monthly payments and repay debts. Here’s the scoop- DTI is your total monthly debt payments divided by your gross monthly income, then multiplied by 100. Imagine you have $2,000 in debt payments and earn $6,000 a month. Your DTI would be 2,000 divided by 6,000, multiplied by 100, equaling 33%. Easy, right? A lower DTI means you’re in good shape—below 45% is great! But if you’re above 45%, lenders might get nervous. For tips on improving your DTI, or other financial advice, Joe Frank Cerros, loan Officer at JCRMG INC Mortgage Broker, is here to help. Call Joe at 1-888-600-7577 - Look forward to hearing from you! Read the full Disclaimer at https://www.joecerros.com -Doing business in California. DRE 02173635 NMLS 2418994 #jcrmginc #jcrmg #joefrankcerros #jcrmgincltv #jcrmgltv #ltv #jcrmgincloantovalue #jcrmgincmortgage #jcrmgincprequalification #jcrmgprequalification #jcrmgincpre-qualificarion #jcrmgincmortgagebroker