Calculate your DTI with this Simple Formula

[Ralph DiBugnara]

DTI is calculated by adding up all of your monthly bills and dividing it by your monthly income before taxes, then, multiplying it times 100. For example, (2000 ÷ 7000) x 100= 28.6%. Knowing this will give you a better idea of what changes to make to get closer to preapproval. Continuing on the conversation from the previous post, a DTI of 36-43% is a safe range when applying for a mortgage.

Tip: DTI calculation should not include: rent payments, utilities, cell-phone bills, internet bills, groceries, or other non-debt expenses that don't appear on your credit report.