DTI (Debt-to-Income Ratio) - Mortgage Glossary

A percentage that compares your total monthly debt payments to your gross monthly income. Lenders use this number to decide how much mortgage you can afford. For example, if you earn $5,000 per month and your debts total $1,500, your DTI is 30%. Most lenders prefer a DTI below 43%, with some programs allowing up to 50%.