Lenders use the term “debt-to-income ratio” or “DTI” as an indicator of what you can realistically afford when purchasing a home. When using this DTI calculator you will enter your monthly debts, such as credit card payments,
Calculate your debt-to-income ratio before you start your home search.
auto loans and education loans versus your household income to estimate your home-related payments. Lenders generally like to see DTI ratios under 33%, meaning that your housing expenses should not exceed 33% of your gross income. Also consider expenses associated with home ownership, including property taxes, commuting costs, yard maintenance and possible homeowner association dues. All of these factors should be carefully evaluated as you determine what you can afford.