A measure of financial stability expressed as a percentage to determine a borrower’s financial picture. Deciduous Trees - Trees that shed their leaves at seasonal intervals.

A borrower's monthly long term debt payments divided by the borrower's gross monthly income and expressed as a percentage. This ratio is used by lenders to determine if a loan applicant is qualified for the amount of the loan.

The amount of money a person has in outstanding debt, compared to the amount of income a person has. The higher a person’s debt ratio, the more risky the individual appears to potential lenders. Anything below 40 percent is considered good.

Total monthly debt divided by total monthly gross income. Potential lenders consider this ratio in evaluating creditworthiness.

The relationship of a borrower's total monthly payment obligations on long-term debts divisded by gross monthly income, expressed in percentages (AKA: Back End Ratio).

Measures how much you can borrow based on your proposed mortgage payments, property taxes and insurance in relation to your total monthly income. Lenders experience shows that you may borrow from 33% to 40% of your monthly income.

The ratio is expressed as a percentage, which is the result of a persons total monthly income and monthly debt obligations to determine a ratio of debt to income.

The percentage of a person's monthly income used to pay for debt.

A calculation of total monthly obligations to total monthly income used to determine the maximum financing terms which should be extended.

This is a key ratio used to determine the amount of money an individual can borrow. It is the monthly debt (payment obligation) divided by your gross monthly income. This gives a percentage that is compared to the guidelines provided by the investor for approval on your loan.

Also known as debt-to-earnings ratio. A ratio (expressed as a percentage) calculated by dividing gross monthly debt by gross monthly income. Debt-to-income is one of the key factors lenders will look at when considering your credit worthiness.

Borrower's total monthly payments on debt divided by gross monthly income. This ratio is used to figure how much one can borrow for a home.

a measure of financial stability calculated by dividing monthly minimum debt payments by monthly gross income

The percentage of monthly income that can be applied toward monthly long-term debt obligations. It is calculated by dividing monthly minimum debt payments (excluding mortgage or rent payments) by monthly gross income. Percentages may vary, but with FHA the monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income.

The ratio of a borrower's monthly debt payments to his or her monthly gross income. Lenders use this ratio to determine how much of a loan a borrower is qualified for.

The amount of money you have to pay out each month as a percent of your gross income. For example, $2,500 of debt service / $5,000 of gross income = 50% DTI (debt-to-income) ratio.

ratio, expressed as a percentage, found by dividing monthly long term debt payments (payoff greater than one year) by gross monthly income, or in the case of (FHA/VA loans), net effective income.

The percentage of your monthly income that goes to pay your debts.

Percentage of monthly income used for paying existing debt. Generally, most lenders are looking for a ratio of between 32 and 35 percent.

The percentage of net income that pays for non-mortgage debt. Examples of non-mortgage debt include auto loans, student loans, and credit cards. Ratio is calculated by dividing the total amount of monthly payments by total net income. A debt-to-income ratio should be less than 15 percent. Debt-to-income ratios exceeding 20 percent indicates potential for repayment difficulties.

The percentage of the borrower's gross income that will be used for monthly payments of principal, interest, taxes, space heating costs and condominium fees.

An indicator or guideline used to verify the memberâ€(tm)s ability to take on the new loan amount, this ratio is the relationship between the memberâ€(tm)s gross monthly income (before taxes) and the amount of the their monthly debt payments (ie…credit card balances, car loans, and mortgage/rent payments. Loan officers in the underwriting process to determine whether a member should be able to borrow, and if so, at what rate use this ratio.

Ratio (percentage) that compares an individual's current monthly debt service requirements, plus the payment of the new loan requested to the individual's gross income. This ratio is used to evaluate an applicant's ability to repay a requested debt.

The ratio, expressed as a percentage, of a borrowers total monthly obligations versus their monthly income.

The percentage of ones total fixed monthly obligations divided by ones qualified gross monthly income.

This is a formula that lenders use to determine the risk and viability of loans. Typically the lender will divide your monthly debts (credit card payments, PITI for houses etc) by the sum of your personal income and 75% of your rental income (lenders assume 75% occupancy). Generally lenders want your Debt-To-Income ratio to be below 45%.

A ratio that compares all of your monthly debt payments, such as credit card and car payments, to your monthly income. This ratio is used as one factor by the lender to see if you qualify for a mortgage loan.

Borrowers monthly payment obligations as a percentage of their income.

Percentage of total debt payments to gross income.

A borrower’s monthly payment obligations divided by his/her monthly income. Underwriters consider this ratio when deciding whether to approve or decline a loan, and generally it should be less than 38%, but in some cases can be as high as 50%.

Long-term debt expense as a percentage of monthly income.

The debt-to-income ratio is the percentage of your income used to repay debts. Lenders have established standards of how much of your income generally should be used to pay debts.

a borrower's monthly outgoing debts compared to their taxable income.

A measure indicating the level of outstanding debt weighed against the level of income to determine how much, as a percentage, of the monthly income is obligated to debt payment.

A ratio used by lenders to determine whether an applicant is qualified for a mortgage. It equals total amount of debt divided by total gross monthly income.

A mathematical representation of the comparison between the recurring ( more than 12 payments remaining) debt payments borrowers are obligated to make and their income. Derived by dividing a borrower's monthly financial obligations by his/her gross monthly income. Also known as Expense-To-Income Ratio or Back-End Ratio.

Debt to income ratio is a comparison of expenses verses income, stated as a percentage. Having a high debt to income ratio will hamper a consumers' ability to acquire financing in the future. Qualifying for a mortgage or financing a car is difficult with a high debt to income ratio. The consumer will pay a higher interest rate on the borrowed money (loan) costing them much more, over time, compared to a consumer with a low debt to income ratio.

Total monthly debt divided by gross monthly income. The “average” DTI is around 38%.

A formula used by lenders to determine the capacity of the buyer to make the payments on the loan amount, for which they may qualify. Guidelines vary depending on the loan program.

Borrower’s monthly payment obligations divided by gross monthly income; expressed as a percentage.

The ratio used to qualify potential borrowers for a loan. Compares total monthly housing expense and other debt with total monthly income.

Debt to income ratio is calculated by dividing monthly minimum debt payments by monthly gross income.

Monthly debt and housing payments divided by gross monthly income.

The relationship between a borrower's total monthly debt payments (including proposed housing expenses) and his or her gross monthly income; this calculation is used in determining the mortgage amount that a borrower qualifies for.

The ratio used to qualify a borrower for a mortgage. Compares the total monthly housing expense and other debt (the amount paid out) with the total monthly gross income (the amount earned).

The ratio of a consumer's income compared to the debt owed.

A figure, expressed as a ratio, that compares the amount of recurring debt payments a borrower is obligated to make to the amount of their income.

When you apply for a mortgage, the lender looks at the amount of debt you will have relative to your income. Acceptable limits generally range from 33 to 40 percent.

A comparison of gross income to expenses (both housing and non-housing).

An indicator of your ability to take on debt, this ratio is the relationship between your monthly income before taxes and the amount of your minimum monthly debt payments.

Debt-to-income ratio (or DTI) is a measurement of a borrower's ability to take on additional debt. It is a part of anyone's credit profile on Prosper. This number takes into consideration how much debt the borrower had prior to their loan in addition to what their debt will be if the loan they are requesting is made. (Their debt history is part of their credit history, and is reported to Prosper in the initial credit check.) The DTI is calculated by dividing the borrower's annual income (before taxes) into their annual non-housing debt payments. So while it won't reflect your mortgage, it would reflect your car loan. It is expressed as a percentage. Generally a DTI of 20% is at the upper end of normal when excluding housing debt. If you are a beginning lender or unsure of how to factor in high-risk borrowers, we recommend that you stick with borrowers who have a DTI of 20% or less.

a comparison of gross income to housing and non-housing expenses. The maximum debt-to-income ratio is determined by individual loan programs.

Lenders use this ratio to determine how much of a loan a borrower is qualified for. Debt-to-income ratio is the total amount of monthly debt payments, including credit cards and other loans, divided by total gross monthly income.

The relationship between monthly income and minimum monthly debt payments; frequently used by financial institutions as an indicator of a borrower's ability to take on additional debt.

The debt you owe compared to your income

The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her gross monthly income. See housing expenses-to-income ratio.

The ratio between a borrower's monthly payment obligations divided by his or her net effective income (FHA or VA loans) or gross monthly income (conventional loans).

Expressed as a percentage, a debt-to-income ratio helps lenders predict how much money you'll have on hand to pay newly acquired debts. Ratios under 20% are generally considered good; ratios over 36% may limit your credit choices.

The percentage of gross monthly income that goes toward paying for your monthly housing expense, installment debts, alimony, child support, car payments, and payments on revolving or open-ended accounts such as credit cards.

The ratio, expressed as a percentage, that results when a borrower's gross monthly debt payment obligations is divided by his or her gross monthly income.

The percentage of a person's gross, or pretax, monthly income, expressed as a percentage of monthly debt obligations, such as credit card balances, car loans, and mortgage or rent payments. Used in the equity loan underwriting process to determine whether somebody should be able to borrow and, if so, at what rate.

The ratio of the borrower's total monthly obligations. This includes housing principal, interest, taxes, insurances and recurring monthly payments to monthly income. Two common debt ratio's used are the "front-end ratio" and "back-end ratio."

Take your monthly debt payments and divide that by your gross monthly income. That's your Debt-to-Income ratio. This tells a lender how much debt you have and can handle.

DTI is the ratio of monthly debt payments to monthly gross income. Lenders use DTI ratio to determine whether a borrower's income qualifies him or her for a mortgage.

A borrower's total monthly debt divided by gross monthly income and shown as a percentage. (Example: If debt = $1,200 and gross monthly income = $5,000, then the Debt-to-Income Ratio would equal $1,200 divided by $5,000 or 24%.) Total monthly debt includes monthly mortgage payments as well as student loans, car loans, and credit card payments. Also called the back-end ratio or total debt ratio.

Relationship of a borrowers monthly payment obligation on long-term debts divided by gross monthly income, expressed as a percentage.

The primary calculation used in determining whether a borrower can qualify for a mortgage. It is a calculation of the borrowerâ€(tm)s monthly housing costs (PITI, homeowners association fees, etc.) as a percentage of monthly income. Some variations also include housing costs along with other monthly debt.

Your income compared to the debt you owe.

a comparison of gross income to housing and non-housing expenses; Conventional lending policies usually require the-monthly mortgage payment should be no more than 32% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 38% of income; however, our many non-conventional lenders allow the combined back ratio up to 55%.

The ratio of a persons total monthly debt payments to their monthly gross income. A ratio that lenders use to determine if a borrower qualifies for a mortgage.

The ratio of the borrower's total monthly obligations - including housing expenses and recurring debts - to monthly income. It's used to determine your capacity to repay the mortgage and all other debts. Your debt-to-income ratio is a crucial calculation in determining the loan amount for which you can qualify. It represents your qualifying ratio - that is, your financial capacity to assume and repay debt. See also Back-end Ratio.

The ratio (percentage) of an individual's monthly income that will be needed to pay for all monthly expenses including principal, interest, tax and insurance (PITI).

Before you go out home buying, you should determine what your price range is. Lenders generally figure that you shouldn't spend more than about 33 to 40 percent of your monthly income for your housing costs. The debt-to-income ratio measures your future monthly housing expenses, which include your proposed mortgage payment (debt), property tax, and insurance, in relation to your monthly income.

Long-term debt expenses as a percentage of monthly income. Lenders use this ratio to qualify borrowers for mortgage loans, typically setting a maximum debt-to-income ratio of 36%.

The ratio of a burrower's monthly payment obligation on long-term debts divided by their gross monthly income.

Formula used to qualify borrowers. The ratio expresses, as a percent, the amount of monthly debt payments in relation to the amount of monthly income of a borrower(s).

The ratio, expressed as a percentage, which results from dividing a borrower's monthly payment obligation on long-term debts by the borrower's gross monthly income.

Upon calculation, this figure is often used to determine one's credit worthiness. To determine, one needs to assess the percentage of his | her gross income used to cover outstanding loan | credit payments in contrast with the amount of his | her net income. Generally speaking, the two essential ratios that are considered are: first, the front-end ratio, the percentage of monthly before-tax income used to make house payments (principal amount, approximated interest charges, property taxes and homeowners' insurance), and second, the back-end ration, the amount spent on other forms of money borrowed, i.e., auto | student loans and credit card bills. The first ratio is called the "front-end ratio" and the second is the "back-end ratio."

Loan-to-Value Ratio Truth-in-Lending (TIL)

It is the proportion of debt you owe in relation to your income. It is calculated on the basis of debt divided by income.

Ratio of monthly debt payments, including mortgage debt, to monthly gross income.

The percentage of a person's monthly earnings used to pay off debt. It is taken into account by lenders in extending credit.

The ratio (expressed as a percentage) which describes a borrower's monthly payments on long-term debts divided by their "net effective income" (for FHA and VA loans) or gross monthly income (for conventional loans).

This measures how much you owe (debt) against how much you earn (income). This is calculated by dividing your total monthly debt (including mortgage loan payment, monthly installment payments, and minimum payment on all revolving debt) by your gross monthly income. The mortgage loan payment should include principal, interest, real estate taxes, hazard insurance, and mortgage insurance if required. Generally the lower the ratio, the better your financial condition.

A measure of creditworthiness computed by dividing the dollar amount of monthly debts by total gross monthly income, then converting the result to a percentage.

The relationship between the amount of a person's total debt and his or her income, expressed as a percentage.

Total debt expenses as a percentage of gross monthly income. Lenders use this ratio to qualify borrowers for mortgage loans.

Ratio of monthly debt to gross monthly income.

A ratio used by lending institutions to determine whether a person is qualified for a mortgage. Debt-to-income is the total amount of debt, including credit cards and other loans, divided by total gross monthly income.

The ratio used to qualify you for a mortgage. It compares your total monthly housing expenses and other debt (the amount you pay out) with your total monthly gross income (the amount you earn).

the ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her net effective income (FHA/VA loans) or gross monthly income (conventional loans).

a percentage of the borrower's debts divided by their gross earnings; the FHA's standard is that the monthly mortgage installment should not exceed 29% of the borrower's monthly gross earnings, and the monthly mortgage installment plus with all other debts should not exceed 41% of the borrower's monthly gross earnings

The ratio of aggregate monthly debt to aggregate monthly income.

the ratio of a borrower's monthly payment obligation, divided by his or her monthly income. The ratio is expressed as a percentage and is used by lenders as a measure of eligibility for a loan. A front-end ratio compares all monthly housing expenses to the gross income. A back-end ratio also figures in other debts, such as auto loans and credit cards.

Total monthly debt expenses expressed as a percentage of gross monthly income.

Measures your future monthly housing expenses, which include your proposed mortgage payment (debt), property tax, and insurance in relation to your monthly income. Mortgage lenders generally figure that you shouldn't spend more than about 33 to 40 percent of your monthly income on housing costs.

The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts, plus the proposed housing payment, is divided by his or her gross monthly income.

The ratios, expressed as a percentage, between a borrower's monthly payment obligation on long term debts, and his gross monthly income

Ratio of a family's monthly debt payments to monthly income, used as a measure of how much the family can afford to borrow. Typically, lenders want borrowers to have a ratio of 35% or less; that is, no more than 35% of the borrowers' monthly income goes to pay off loans. Lenders may consider rent as if it were "debt" for this purpose.

The percentage of a person's monthly earnings used to pay off all debt obligations. Lenders consider two ratios, constructed in slightly different ways. The first, called the front-end ratio, the ratio of the monthly housing expenses – including principal, interest property taxes and insurance (PITI) is compared to the borrower's gross, pretax monthly income. In the back-end ratio, a borrower's other debts, such as auto loans and credit cards, are also figured in. Lenders usually take both into account and set an acceptable ratio, which might be expressed as 33/39. Some lenders, and some lending qualifying agencies such as FHA, take only the back-end ratio into account.

The percentage derived by dividing total debts of a household by total gross income. Used by lenders in determining a buyer's ability to re-pay mortgage debt.

A method used by lenders to establish if a person is qualified to receive a mortgage or loan.

A ratio measuring the amount of debt one has, as a proportion of one's income.

The ratio of a borrowerâ€(tm)s monthly debt payments to his or her monthly gross income. Lenders use this ratio to assist them in determining how much to lend.

Your combined housing and non-housing expenses divided by your gross income. Lenders use this ratio to evaluate your ability to repay the mortgage. The lower it is, the better are your chances are of getting a loan. For example, to get a mortgage loan in the USA, your ratio must be lower than 36%.

The ratio of the borrower's total monthly obligations - including housing expenses and recurring debts- to monthly income. This ratio is used by lenders to determine the borrower's financial capacity to assume and repay debt. This ratio is crucial when calculating the loan amount for which the borrower can qualify.

A measure of creditworthiness that calculates your debts as a percentage of income, and is calculated by dividing the total of your long-term debt payments by your gross income.

a comparison of gross income to housing and non-housing expenses; With the FHA, the-monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income.

The ratio of the borrower's total monthly obligations, including housing expenses and recurring debts, to monthly income. It is used to determine the borrower's capacity to repay the mortgage and all other debts.

An evaluation of a loan applicant's creditworthiness based on a comparison of current indebtedness to his or her income.

The percentage of before-tax earnings that are spent to pay off loans for obligations such as auto loans, student loans and credit card balances. Lenders look at two ratios. The front-end ratio is the percentage of monthly before-tax earnings that are spent on house payments (including principal, interest, taxes and insurance). In the back-end ratio, the borrower's other debts are factored in.

The percentage of your total debt compared to your total income before taxes. Many lenders like to see your debt (including your mortgage payments) be no more than 36% of your total income.

the relationship between the consumer's monthly debt payments and monthly income, expressed as a ratio. Lenders will often set a maximum debt-to-income ratio and usually do not make loans to consumers whose ratios exceed the lender's standard. With the FHA, the-monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income.

A formula lenders use to determine the loan amount for which you may qualify. Also known as the "back-end ratio." Guidelines may vary, depending on the loan program.

Calculated by dividing the total monthly debt payments (debts that show on your credit report) by the total gross monthly income.

Debt-to-income ratio is the percentage of a consumer's monthly gross income that goes toward paying debts. It is usually expressed as two numbers. The first number indicates the percentage of income that goes toward paying off a mortgage principal and interest, mortgage insurance, hazard insurance, property taxes, and homeowner's association dues.