Every Home Has a Story. The Next Chapter Begins When You're Ready.For many homeowners, selling the family home is one of the most emotional decisions they'll ever make.This isn't just a piece of
What Is Debt to Income Ratio?
Dated: February 17 2021
Views: 156
What Is DTI and Why Should I Care.
If you’ve ever gone through getting approved for a Mortgage, you’ve probably heard the term “Debt to Income Ratio” or DTI.
What the heck is it! Well, it’s a way that helps the lender determine what purchase price and monthly payment you are qualified for a home loan.
Here’s a good definition: source Google
Your debt-to-income ratio (DTI) compares how much you owe each month to how much you earn. Specifically, it's the percentage of your gross monthly income (before taxes) that goes towards payments for rent, mortgage, credit cards, or other debt.
Different types of Loans have different guidelines and DTI requirements.
For Example:
FHA, will possibly required you to have a DTI of 43% or less, though it varies based on credit score. To be more specific, your front-end DTI (monthly mortgage payments only) should be 31% or less, and your back-end DTI (all monthly debt payments) should be 43% or less.
Conventional, is around 45%, higher exceptions can be made with a higher credit score and more cash reserves.
There are several more factors that play in to getting the best interest rate and desired mortgage payment, such as payment history, down payment etc…
If you’re curious, I would recommend checking in with your lender and see what you’re pre-approved for.
With interest rates this low it might be the right time to make your Best Move!
Centennial CO Real Estate- Mike Conner, is a Licensed Colorado Realtor with EXIT Realty DTC – I list and sell homes in Centennial, Aurora, Parker, Highlands Ranch, and all nearby communities. Visit my Website to see local available home listings or to get your Free Home Evaluation. Call or text Mike today at 720.422.1765
Mike Conner
Mike Conner is a trusted Realtor serving Aurora and the surrounding Colorado communities, with a special focus on Seniors 55+ and Move-Up Buyers navigating life’s next chapter. With years of exp....
Latest Blog Posts
Don't Just Buy Your Next House—Choose the Home That Fits Your FutureBuying a home in your 30s or 40s often revolves around growing a family.You need more bedrooms.A larger yard.Better schools
The smartest improvement isn't always the biggest one. It's the one that helps you sell without spending money you'll never get back.If you've lived in your home for 20 or 30 years, chances are you
Downsizing can create freedom—but the wrong decisions can cost you thousands.For many Empty Nesters, downsizing sounds simple:Sell the big house. Buy something smaller. Keep the difference.But
The content relating to real estate for sale in this Web site comes in part from the Internet Data eXchange (IDX) program of METROLIST, INC., DBA RECOLORADO©. Real estate listings held by brokers other than EXIT Realty, A Smart Move are marked with the IDX Logo. This information is being provided for the consumers' personal, non-commercial use and may not be used for any other purpose. All information subject to change and should be independently verified. September 26, 2026 11:19 AM UTCd
