Check your debt-to-income ratio
Lenders look at two numbers: your housing ratio and your total debt-to-income ratio. Add your income, the mortgage payment you have in mind, and your monthly debts to see both, along with the loan programs that may fit.
- Housing ratio (front-end)
- Your housing payment divided by your gross monthly income. Example: $3,000 is 30% of $10,000.
- Total DTI (back-end)
- Your housing payment plus your other monthly debts, divided by your gross monthly income. Example: add $1,000 of other debts, and $4,000 is 40% of $10,000.
How the ratios work
Lenders add up the required monthly payment on each debt, not the full balance. Everyday costs like groceries, utilities, and phone bills are not counted. Each loan program sets a limit for the housing ratio and a limit for the total DTI, and you need to be within both.
Limits can flex with credit score, savings, and the lender's automated approval. VA looks at residual income, the money left after your monthly bills, so it may allow a higher ratio. Lower is always safer.
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- Android
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Want to talk through your numbers? A loan officer can look at your full picture and show you the options.
This calculator is for general educational purposes only. Results are estimates, not a pre-approval, a commitment to lend, or an offer of credit. Limits vary by loan program, credit, and cash reserves, and may change. Nothing you enter is saved or sent to Matek. Consult a licensed loan officer about your specific situation.