Despite the volatile nature of the forex market, one of the most important factors for mortgage lenders to consider when assessing the risk of a potential borrower is their debt-to-income (DTI) ratio. This ratio, essentially, is a way for lenders to measure an applicant’s ability to make monthly payments on their mortgage over the lifetime of the loan. In this article, we’re going to discuss the ins and outs of mortgage debt-to-income ratio forex, including how lenders determine it and how it affects the loan process. Your mortgage debt to income ratio (DTI) is a financial metric lenders use to determine the stability of your financial situation, and if you can safely afford to take on a mortgage loan. It’s calculated by dividing your recurring monthly debts by your gross monthly income. A DTI of 36% or lower is generally considered a safe amount, while anything above 43% may be too risky, and may make it more difficult to obtain a loan. Your debt payments on all of your loans, including your mortgage, can’t exceed 36% of your pretax income each month. Lenders will consider your credit score, assets and employment history during the review process.
Understanding Your Mortgage Debt to Income Ratio
