Mortgage Debt-to-Income Ratio (What Is a GOOD DTI? How to calculate DTI?)

In this video you will learn how to calculate your debt-to-income ratio, what the maximum limits are for approval and how to solve problems if you are over the line on DTI. Most of the information out there on the internet is DEAD WRONG. Outdated rules are quoted everywhere, without an understanding of how automated underwriting sets a custom DTI limit based on your individual application characteristics.

Call or text me anytime at 314-599-0511 for help with your mortgage.

NMLS# 374393. Vice President/Mortgage Banker at Paramount Bank NMLS 551907. Equal Housing Lender. FDIC Insured.

What is a good DTI?

[MarkAndersonMortgage]

I had no idea when I made this video about a year ago that it would become one of my best performing videos. Thanks to everyone that has watched, liked and subscribed! My goal is to continue to provide straightforward, easy to understand content about the mortgage process.

[martinecherubin]

This information was incredibly useful. My DTI used to be under 30% a few years back and then my mom put the house on my name, I got a car, and graduated college. Now everything is down the drain. But thanks a lot for the helpful tips at the end.

[mrwilliams]

only thing i dont agree with is to let your job know your business thats when they try and hate on you and make your process harder but everything else was very helpful.. you just gained a new subscriber

[shoshanahhillman]

Thank you for sharing this information. My daughters and I appreciate your time.

[yourlendergreg]

Great information, Mark. Thank you for taking the time to dive into this.

[gerardboulin]

Thanks for making this video because it was so clear and simple to understand! I have learned a lot from it and it also bring my confidence higher of buying a house in the future too.

[kiwiflare]

First video I've seen on this that actually takes into account the student loan deferral status! Thank you so much!

[bractanzania]

Great job explaining this! Thank you 🙏

[fuschiapretty]

This was an excellent explanation. I'm getting ready to start this process as a single person in a high priced and high tax metro area and wondered if the mortgage input part of the DTI formula is just the lender portion, or if it includes insurance, property tax, HOA fees, that sort of thing. If you see this, thanks! I know this is an older video, but it was very helpful!

[alexalvarez]

Awesome video! I would like to hear your non biased opinion on my particular situation.

[MrBodacious]

great information, lots of help! thanks for what you do!

[benprovost]

I find all of your videos useful. I’m sure they are time consuming to make, but I do appreciate it. If I could make a suggestion? Can you make a video (or just explain to me) the cost of locking early? I wasn’t aware there was a cost until recently, even tho I can’t lock until 30 days.
Anyway, I’m Just keeping my fingers crossed that my rate doesn’t increase much by the time I can lock with all the market volatility. 🤞

[anthonypech]

For a married couple, would we combined both our dept and divide by our total gross income to get a dti ?

[premkumar-ghuc]

Will i get a better interest rate in new mortgage if my DTI is 30% instead of 40%?

[natecullamar]

Great content! thanks for the work you share

[Pinnamanenirahulgudivada]

please post about DTI Calculation second home refinance, investment refinance, investment purchase, second home purchase and primary refinance

[charliemich]

Great explanations. Quick question - when you pay off your debts to get a lower dti could that look unfavorable by an underwriter as you would have access to create a lot of debt, ie you have 12 credit cards with high limits but owe very little or nothing on them? Thanks for sharing your knowledge

[GriffinThomasMFCEO]

So, business owners that have multiple auto loans in the personal name, even though it’s a fleet for the company (example I own a pest control company) are pretty much screwed at ever buying a home (because of course I also write off as much as legally possible to also show a relatively low income)

[jasmayates]

Good info! Me and my husband together make 109, 600 but we are concern about DTI. How is revolving credit shown with DTI when the cards are charged off? We both have little over 600 credit scores. We are looking to use VA loan.

[cgjpjtv]

But how does this change with already owning a rental property? Is the difference between your mortgage vs their rent considered income or...?