Analyze your Debt to Income Ratio
Your Total Gross Monthly Income(before taxes)
Monthly installments and revolving debts
Car Payment
Credit Cards
Other
Your estimated house payment
Total monthly debt
Your estimated house payment
(Divided By)
Your total gross monthly income
(Equals)
Housing Debt Ratio
(ideally between 28% and 30%)
Example:
Estimated house payment
750.00
(divided by)
Total gross monthly income
2500.00
(equals)
Housing Debt Ratio
.30
Your estimated house payment plus total gross monthly debt
(Divide By)
Your total gross monthly income
(Equals)
Total Debt Ratio
(ideally between 38% and 42%)
Example:
Estimated house payment
1050.00
(divided by)
Total gross monthly income
2500.00
(equals)
Total Debt Ratio
.42
