WebDebt-to-Income Ratio Calculator. Your debt-to-income (DTI) ratio and credit history are two important financial health factors lenders consider when determining if they will lend you money. To calculate your estimated DTI ratio, simply enter your current income …
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The Department of Trade and Industry (DTI) is a prime mover of consumer welfare. It is committed to protecting the rights and interests of the consumers and is also committed to developing policies and programs aimed at sustaining the growth and development of the Philippine economy.
What is a DTI ratio?Your debt-to-income ratio (DTI) is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow. Different loan products and lenders will have different DTI limits.
What are the DTI limits for different loan products?It’s advisable to keep your DTI at or below 43% as a general guideline. However, the actual maximum is determined by your other requirements as well as the type of loan you’re seeking. You can have a DTI as high as 50% with a conventional loan from Fannie Mae or Freddie Mac, for example.
What is a good debt-to-income ratio?Financial experts consider a good debt-to-income ratio as one below 36% (for a back-end ratio), which means that only 36% of your income goes towards repaying your financial obligations. However, most lenders accept a higher DTI of 41% or less, though the precise DTI ratio that lenders will accept can vary. What do your DTI results mean?
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