Debt-To-Income Ratio (DTI)
A personal-finance measure that compares an individual's debt payments to the income he or she generates. This measure is important in the lending industry as it gives lenders an idea of how likely they will receive payments from the borrower. Investopedia Says:
The higher this ratio, the more burden there is on the individual to make payments on his or her debts. If the ratio is too high, the individual will have a hard time accessing other forms of financing. Related Terms:
A-Credit
Combined Loan To Value Ratio - CLTV Ratio
Credit Rating
Credit Risk
Default Risk
Gross Debt Service Ratio - GDS
House Poor
Household Income
Recurring Debt
Total Debt Service Ratio - TDS |