Why lenders use the ratio

Debt-to-income ratio compares required monthly debt payments with gross monthly income. Lenders may use different definitions and thresholds, and they verify income, credit, assets, and expenses separately.

FAQ

Should rent be included?

For a future mortgage estimate, include the proposed housing payment. For an existing personal budget, use the obligations that match the question you are asking.

Is this a lending decision?

No. It is an educational estimate and cannot predict approval, pricing, or affordability.