DTI, Debt to Income, is a metric used to determine your ability to repay debt compared to your income. Debt payment relative to incomeThis means the portion of income used for repayment, and the lower the DTI, the greater the ability to repay debt.
DTI is applied differently depending on an individual’s credit score. 700 or higher: 50% 680–699: 45%
If the home price is $625,000 If the down payment is $125,000
With a 30-year fixed loan at 5.250% interest $500,000 If you obtain a loan
Principal and interest
$2,760.00
Property Tax
$520.83
Home Insurance
$145.83
Total
$3,426.66 x2
The individual’s monthly income Approximately $6,853 Must be at least this amount.
Based on a credit score of 700; the minimum monthly income may change if there are other debts.