Debt-to-Income
Work out the share of gross monthly income that goes to housing and to all monthly debts.
Debt-to-income
Housing + debts share of income
Within the planning ratio of 36%. Housing alone is 30% (above the planning ratio of 28%).
| Other monthly debts | $800 |
|---|---|
| Housing payment at the planning ratios | $5,600 |
An indicative figure for planning. Not a lender quote and not an offer of credit. Sidney Manzo, CA DRE #01108914, licensed in California.
RE/MAX Dream Properties (ASLG Inc), CA DRE #02142193
How this works
Two ratios lenders look at
The housing ratio is the monthly housing payment divided by gross monthly income. The total ratio adds your other monthly debt payments before dividing.
The starting comparison figures, 28% and 36%, are planning ratios you can adjust. Each lender sets its own limits, and limits differ by loan type.
The tool also shows the housing payment that would sit within both planning ratios with the debts you entered.
Questions
How this estimate works
What income should I use?
Gross monthly income before taxes for everyone on the loan.
What goes in the housing payment?
Principal and interest, property tax, home insurance, HOA dues and mortgage insurance. The mortgage calculator can estimate it.
What if I am above the planning ratio?
Paying down debts, a larger down payment or a lower price can bring the ratios down. A lender can tell you what applies to your loan.