How does your DTI rank? And what does it mean

Success Strategies

February 1, 2024

Hey Future Homeowners,

Navigating the seas of real estate can sometimes feel like deciphering a secret code. But fear not, because today we’re tackling one of those mysterious acronyms: DTI, aka Debt-to-Income ratio. 🕵️‍♂️🏡

DTI Demystified: Before I dove into the world of real estate, terms like DTI seemed like alphabet soup. Now, I’ve discovered that understanding your DTI is like wielding a secret weapon on your journey to homeownership. In a nutshell, DTI is the percentage of your gross monthly income dedicated to paying off your debts. It’s the litmus test lenders use to gauge how much additional financial responsibility you can comfortably handle.

DTI Calculator Magic: Calculating your own DTI might seem like an intricate dance, but fear not! Check out my 90 Days to Homeowner guide, where you’ll find a nifty DTI calculator to make the process a breeze.

Know Your Numbers: Here’s a quick cheat sheet to interpret your DTI:

  • Over 50%: High debt level. Lenders might be cautious about adding more to your plate.
  • 43% to 50%: Still high, but there’s room to make it work. Aim lower for better rates and financial stability.
  • 36% to 41%: You’re on the right track! A good balance between debt and income, increasing your loan approval odds.
  • Below 36%: Gold standard zone! Enjoy access to new loans or credit lines.

Let’s Talk and Calculate: Got questions about DTI or want a copy of my 90 Days to Homeowner guide with the DTI calculator? Drop a message on our socials at @risetm2019! I’m here to make your journey smoother.

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