Resources > Glossary > Total Debt Ratio

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

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Common Terms 1   Common Terms 2

Total Debt Ratio

Function: noun

Definition 1:
Monthly debt and housing payments divided by gross monthly income. Also known as Obligations-to-Income Ratio or Back-End Ratio. The ratio of debt an entity has relative to their assets. The debt ratio can help investors determine a company's level of risk.