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DTI (Debt-to-Income ratio)

Total monthly debt payments divided by gross monthly income — the key mortgage underwriting number.

Why it matters

Front-end DTI counts only housing costs; back-end DTI counts all debt payments. Conventional mortgage limits are typically 43% back-end. Lowering DTI (by paying off cards or extending non-mortgage terms) is often the fastest path to a mortgage approval.

See also

Educational only — not financial, tax, or legal advice.