Debt-to-Income Ratio (DTI): What Does It Mean?
search for terms
Debt-to-income ratio (DTI) is a measure of your monthly debt obligations relative to your gross monthly income, expressed as a percentage. Lenders use DTI to assess your ability to take on additional debt, particularly for mortgage applications. It's calculated by dividing total monthly debt payments (including the proposed new mortgage) by gross monthly income. Most conventional lenders prefer a DTI below 43%, though some programs allow higher. Front-end DTI looks only at housing costs (ideally under 28%), while back-end DTI includes all monthly debts.
Todd Domachowski
Jenny Wilson
May 15, 2026
8 min
A VA loan can make homeownership possible for military families. 0% down, no PMI, and competitive rates. Here's what to know before you buy.
Jessica King
Jenny Wilson
Feb 27, 2026
7 min
The mortgage process can feel like a lot. Here's a first-time buyer's plain-English guide to prequalification, loan types, and mortgage insurance.
Gilles Hudelot
Jenny Wilson
Feb 15, 2025
7 min
Whether you work for someone as an employee, are a freelancer or have multiple streams of income, knowing what forms you’ll need to file your personal taxes is key.
