Debt to Income Ratio?
The debt to income ratio compares your debt payments to your overall income.
Example: List your minimum monthly debts such as child support, alimony, revolving bills, student loans, etc. DO NOT include utilities, cell phone bill, food, etc.)
List of Debt
Credit Cards $150
Car Payment $500
Total Debt = $1,650 per month
Your total debt divided by your monthly income = DTI
$1,650/$8,333 = 19.8 or 20% DTI.