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Mortgage Debt-to-Income (DTI) Ratio Calculator

Determine your eligibility for a home loan by calculating your front-end and back-end DTI ratios.

Include salary, bonuses, alimony, etc., before taxes.

Estimated Principal, Interest, Taxes, and Insurance for the new home.

Sum of car loans, student loans, credit card minimums, etc. (Do not include current rent/mortgage).

function calculateDTI() { var incomeInput = document.getElementById("grossMonthlyIncome").value; var mortgageInput = document.getElementById("proposedMortgage").value; var otherDebtInput = document.getElementById("otherMonthlyDebt").value; var resultDiv = document.getElementById("dtiResult"); var income = parseFloat(incomeInput); var mortgage = parseFloat(mortgageInput); var otherDebt = parseFloat(otherDebtInput); if (isNaN(income) || income <= 0) { resultDiv.style.display = "block"; resultDiv.innerHTML = "Please enter a valid Gross Monthly Income greater than zero."; return; } if (isNaN(mortgage)) mortgage = 0; if (isNaN(otherDebt)) otherDebt = 0; // Front-End DTI Calculation (Housing Ratio) var frontEndDTI = (mortgage / income) * 100; // Back-End DTI Calculation (Total Debt Ratio) var totalDebt = mortgage + otherDebt; var backEndDTI = (totalDebt / income) * 100; var interpretation = ""; var resultColor = "#333"; // Interpretation based on standard lender guidelines (e.g., 28/36 rule and 43% QM limit) if (backEndDTI <= 36) { interpretation = "Excellent: Lenders generally view ratios under 36% very favorably. You are likely in a strong position to qualify for competitive rates."; resultColor = "green"; } else if (backEndDTI > 36 && backEndDTI <= 43) { interpretation = "Good / Acceptable: You fall within the typical range for most qualified mortgages. Lenders may require stricter verification."; resultColor = "#d4a017"; // darker yellow/orange } else if (backEndDTI > 43 && backEndDTI <= 50) { interpretation = "High Risk: This is above the standard 43% limit for Qualified Mortgages. Qualifying may be difficult and require compensating factors (high credit score, large reserves) or non-QM loan products."; resultColor = "orange"; } else { interpretation = "Very High Risk: Ratios over 50% make it extremely difficult to obtain standard financing. Lenders will likely require you to lower your debt or increase income before approving a loan."; resultColor = "red"; } resultDiv.style.display = "block"; resultDiv.innerHTML = "

Your DTI Results

" + "Front-End Ratio (Housing Only): " + frontEndDTI.toFixed(2) + "%" + "(Target is typically under 28%)" + "Back-End Ratio (Total Debt): " + backEndDTI.toFixed(2) + "%" + "" + interpretation + ""; }

Understanding Debt-to-Income (DTI) for Mortgage Qualification

When applying for a mortgage, lenders use your Debt-to-Income (DTI) ratio as a primary indicator of your ability to repay the loan. It is a percentage that compares your total monthly debt obligations to your gross monthly income before taxes. A lower DTI ratio demonstrates to underwriters that you have a good balance between debt and income, making you a less risky borrower.

There are two types of DTI ratios lenders look at:

• Front-End Ratio (Housing Ratio): This only calculates your proposed housing expenses (Principal, Interest, Taxes, and Insurance, or PITI) divided by your gross income. Lenders typically prefer this to be below 28%.
• Back-End Ratio (Total Debt Ratio): This is the most critical number. It includes your proposed housing expense plus all other recurring monthly debts, such as car payments, student loans, minimum credit card payments, and alimony.

How to Use This DTI Calculator

To get an accurate assessment, you need realistic numbers. For example, if your gross annual salary is $84,000, your gross monthly income is $7,000. If you are looking at a house that would cost roughly $2,200 a month (PITI), and you have a $400 car payment and $150 in student loans, your inputs would be:

• Gross Monthly Income: $7,000
• Proposed Mortgage (PITI): $2,200
• Other Monthly Debt: $550 ($400 + $150)

Using these example numbers, your Front-End ratio would be roughly 31.4%, and your Back-End ratio would be roughly 39.3%. This would generally place you in an acceptable range for many loan programs, though slightly above the ideal "28/36" targets.

Interpreting Your Results

While requirements vary by loan type (FHA, VA, Conventional), here are general benchmarks for the crucial Back-End DTI ratio:

• 36% or lower: Considered ideal. You present a low risk to lenders.
• 37% to 43%: Generally acceptable for most conventional "Qualified Mortgages." Depending on your credit score, you may face slightly higher interest rates.
• 44% to 50%: This is considered a high ratio. FHA loans or lenders using manual underwriting might approve these ratios if you have significant "compensating factors," such as a high down payment or excellent cash reserves.
• Over 50%: It is very difficult to qualify for a standard mortgage with a DTI over 50%. You will likely need to pay down existing debt or increase your income before reapplying.