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Debt-to-Income Ratio
Explanation:
The percentage of before-tax earnings spent to pay off home loans, auto loans, student loans, credit card balances, and the like. Lenders look at a front-end ratio and a back-end ratio. The front-end ratio is the percentage of monthly before-tax earnings that are spent on house payments (including principal, interest, taxes and insurance). In the back-end ratio, other debts are factored in.