Description

Debt 2 Income Calculator, This debt to income ratio app has been created to help you calculate how much debt you can afford. Use this app to determine the ratio between your current income and current debt.

You can use this debt-to-income ratio calculator, also referred to as a DTI calculator, to figure out if you might be at risk of carrying too much debt or if you qualify for a loan of a given size. In general, lenders apply certain rules when evaluating someone that has applied for credit. The calculator performs both front-end, as well as back-end debt-to-income calculations.

Debt-to-income ratio
Percentage of monthly income that is spent on debt payments, including mortgages, student loans, auto loans, minimum credit card payments and child support.

Debt payments / income
For example: Peter earn $10,000 a month. His total debt payments are $3,800 a month. His debt-to-income ratio is 38 percent.
$3,800 / $10,000 = 0.38

Front-end ratio
A standard rule for lenders is that your monthly housing payment (principal, interest, taxes and insurance) should not take up more than 28 percent of your income before taxes. This debt-to-income ratio is called the "housing ratio" or "front-end ratio."

Back-end ratio
Lenders also calculate the "back-end ratio." It includes all debt commitments, including car loan, student loan and minimum credit card payments, together with your house payment. Lenders prefer a back-end ratio of 36 percent or less.
Ratios aren't carved in stone

Those recommended ratios (28 percent front-end and 36 percent back-end) aren't ironclad. In many cases, lenders approve applicants with higher debt-to-income ratios. Under the "qualified mortgage rule," federal regulations give legal protection to well-documented mortgages with back-end ratios (all debts, including house payments) up to 43 percent.

"That's been one of the bigger drivers (of affordability) because that is basically drawing a box around what's a qualified mortgage," says Tim Skinner, home lending sales and service manager for Huntington Bank in Columbus, Ohio. "A large portion of the lending community has decided to stay in that box."

Credit history:
If you have a good credit history, you are likely to get a lower interest rate, which means you could take on a bigger loan. The best rates tend to go to borrowers with credit scores of 740 or higher.

Thanks for your support and do visit nitrio.com for more apps for your iOS devices.

Hide.. Show more..

Screenshots

User Rating

0 out of 5

0 ratings in Switzerland

Ratings History

Reviews

App doesn't have any reviews yet

Store Rankings

Ranking History

App Ranking History not available yet

Category Rankings

Chart	Category	Rank
Top Paid	United States Finance	453

Keywords

Users may also like

Name	Reviews	Recent release
Loan Calculator with Extras Best app for calculating loan	0	9 months ago
Debt To Income Calculator Calculate your DTI Ratio	0	10 months ago
Budgeter - A Simple Budget Easy to use budgeting app	0	1 year ago
Simple Budget Envelopes Take your budget on the go!	0	1 year ago
SSPI Stock Calculator Stock profit/loss calculator	0	1 year ago
Money Time: Budget & Savings Expense Tracker & Planner	0	7 months ago
Tongo Financial instant access to income	0	8 months ago
iThink Mortgage 360	0	1 month ago
Budget Planner App: Up! All Your Finances in One Tool	0	11 months ago
Budgie: Expense & Budget Log Transaction & Plan Budgets	0	4 months ago