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.