Debt-to-Income

DTI

Debt-to-income ratio compares monthly debt payments to gross monthly income. Lenders use it to evaluate a borrower's ability to repay a loan.

Lower DTI ratios typically improve approval odds and pricing. DTI is especially important in mortgage and auto loan underwriting.

Related Terms

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LTV

Loan-to-value ratio compares the loan amount to the value of the collateral. It measures how much of...

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