What is considered a good debt to income ratio

[Anonymous]

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@Anonymous wrote:

I can't believe there are people out  there with two-thirds of their income as extra money to spend.  I'm shocked.  36%?  I honestly don't know anyone who carries a debt including their mortgage/rent of only 36% of their income, except drug dealers.

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Really?

Mine is 38%. It's not that I have extra money to spend. That money has to cover food, utilities, fuel, entertainment, etc. I carry a very small amount of debt.

I think I'm shocked more in the other direction -- I get nervous that it feels like I don't have enough money. I can't imagine how stressful it would be to have more than that percentage.

[tooleman694]

Its called a budget.

[webhopper]

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@tooleman694 wrote:

Its called a budget.

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+1000

[HumbleLobster]

Based on my preapproval our backend DTI will be around 40%.  My LO said that they process all the way through 43% (Wells Fargo) without much fuss.  One of the things that actually makes that number over inflated is that my wife didn't qualify to be on the loan since her credit history is too short, and as a result its in my name only.  With both of us the DTI falls to around 26%.

[tooleman694]

Once thing to remember is that someone earning 50k a year with a 45 % DTI VS someone earning 100k a year with a 45 % is a huge difference. The guy earning 100k is still gonna have a lot of cash left over.