Define: dti in real estate?

Question

Define: dti in real estate?

Answer 1

true dti is actually two calculations.  front and back.  The front would be what your principle and interest payments would be against your income.  Back end dti would be your principle, interest, taxes, insurance and all debt responsibilities divided against your total income.  Generally, the rule is 28% front, 36% back.  This does vary by lender and program, hope this helps

Answer 2

DTI is your debt to income ratio.  Basically it is how much you make versus how much you pay out in bills.  The only bills that are included in the calculation are the ones that appear on your credit report.  Credit cards, mortgages, vehicle loans, student loans.  Utility bills do not count.

Answer 3

I just wanted to expand a little on what loan girl said...if you have any loans against a retirement account this will also have to be included into your dti