123Notary
Enter Zip, City, or County... i.e. orange,NY or 90019
Search Method:    regular time edocs


Resources > Glossary > Debt To Income Ratio

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

0-9  A  B  C  [D]  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z  
Common Terms 1   Common Terms 2

Debt To Income Ratio

Function: noun

Definition 1:
The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his/her net effective income in the case of FHA/VA loans, or gross monthly income in the case of conventional loans. Debt to income ratios are very important for a lender to use when evaluating how risky a borrower is in terms of the likelihood of default. One definition of debt to income ratio is is the percentage of a consumer's monthly gross income that goes toward paying debts.

Thesaurus / Related Terms
Gross Monthly Income
Default