If you have been taking out loans, you must be aware of the fact that the 3-digit credit score is perhaps the most important figure that is checked by the lenders before lending you a loan amount. But did you know that there is another 2-digit number that is equally important when you take out a loan? Yes, this is the debt-to-income ratio or the DTI ratio and the good news is that it won’t even cost you a penny to calculate the DTI ratio before you negotiate with the lenders. Therefore, if you think that you need to get an insight into your financial life so that you can take better financial decisions, you should use the debt-to-income ratio calculator. If you want to take out unsecured debt consolidation loans or a mortgage loan, the lender will always check your DTI ratio and if you want to be on the safer side, you have to do some smart calculations
- A brief explanation of the debt-to-income ratio
- Using a debt to income ratio calculator
When you have to calculate the DTI ratio, you have to make sure that you keep the ratio at the best level so that you don’t have to be subject to high rates on the loan. High rates will always mean high monthly payments and therefore you should try your best in order to save your dollars on the unsecured debt consolidation loan or a mortgage loan.