Calculate your DTI with this Simple Formula
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.