Calculate Your Debt to Income Ratio to Purchase a Home - Explained Simply #debttoincomeratio #debt #

Debt to income ratio. Sounds confusing. It's actually very simple and very fundamental to your home purchase. Think about it. When you hear debt, you think everything. Cell phone bills, utility bills, everything. Reality, it's just your revolving debts that are on your credit report. Your mortgage payment, your rent payment, your car payment, your credit card deals, your student loans, even some tax repayment options are all going to be on there. All you have to do is take your total income on a monthly basis and divide that by your total debts. That will give you your debt to income ratio. Once you have your debt to income ratio figured out, it's a good percentage to be between 40 and 50 percent. That will give you a good idea as to what you can afford based on your house. Search.