what is a debt-to-income ratio, or DTI?
Put simply, a DTI is the percentage amount of your gross income that goes towards paying off your debts. DTI is always expressed in the form of x/y or front DTI/Second DTI. There are two main types of DTI that you should be aware of. The first kind of DTI is the front ratio DTI, which indicates the percentage of your income that is used towards housing costs, including mortgage, interest, insurance on the mortgage, hazard insurance, property taxes and more. The second kind of DTI is the back ratio DTI, which is the percentage of your income that goes to recurring debt payments, including credit card payments, car loans, student loans, child support, alimony and any legal judgments that may be against you. In the United States, there are varying limits on your debt-to-income ratio that determine if you can get a loan. For example, conventional financing limits for loans are typically 28/36 for your debt-to-income ratio, which means 28 percent for your front ratio and 36 percent for your
