Hey everyone. I have really found the information on this board helpful. I am trying to get everything in place for a new home loan. Which debts are used when calculating your DTI? CCs Auto loans Mortgages Student Loans? What else? Thanks for everyone's help!!!
They take monthly installment loan payments, and the minimum monthly payments on credit cards and other revolving loans and add them together and compare it to your gross monthly income (before taxes etc come out). Meals, utilities, etc do not count. Low 40% is the highest they like to see...low 30% and below is ideal. 50% is about the max any mortgage or auto lenders will consider.