mortgages
2 questions
- Finance
What is a debt-to-income ratio?
Your debt-to-income ratio (DTI) is your total monthly debt payments divided by your gross monthly income, expressed as a percentage. Lenders use it to evaluate loan eligibility — most mortgage lenders want a DTI of 43% or lower.
- Finance
What is good debt vs bad debt?
Good debt funds something that builds value — a home, education, a business. Bad debt funds things that depreciate or provide no lasting benefit, usually at high interest rates. The distinction matters, but interest rate and affordability matter more than the category label.