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DTI Ratio

DTI Ratio
DEFINITION
Debt to Income.  A DTI Ratio is  the percentage of consumers monthly gross income to that goes toward paying debts.  Debts can include principle, interest, taxes, fees, and insurance.  Knowing what your debt to income ratio is can help you increase your chances of getting a better mortgage.  A DTI Ratio below 36% is best.  For a real estate loan, an acceptable DTI Ratio is between 41 and 45 percent.

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