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How to Calculate DTI Ratio: A Step-by-Step Guide to Assess Your Financial Health
bold text**Last updated:** April 7, 2025
Understanding your financial health is crucial, especially when planning major investments like buying a home. One key metric you need to grasp is your Debt-to-Income (DTI) ratio. It plays a significant role in how lenders assess your ability to manage monthly payments and repay debts.
Calculating your DTI ratio is simpler than you might think and can provide valuable insights into your financial standing. By knowing your DTI, you can make informed decisions about taking on new debt, improving your credit score, and achieving your financial goals with confidence.
What Is DTI Ratio
The Debt-to-Income (DTI) ratio evaluates your monthly debt obligations relative to your gross monthly income.
