Tagged : debt

Found 2 blog entries tagged as "debt".

Ever wonder why it's essential to keep your debt in check when applying for a mortgage or what debt matters to your approval? This article will help you answer these fundamental questions so that you're in a great position to get approved for a home loan.

All About Debt-To-Income Ratio (DTI)

Your debt-to-income ratio (DTI) is one of the most critical metrics lenders use to determine how much home you afford because it directly influences the monthly payment you can qualify for.

DTI is a ratio that compares your existing monthly payments with your gross monthly income before taxes. Depending on the mortgage program and your qualification metrics, two types of calculations are used in mortgage qualification: 

  • Front-end DTI -looks at the
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Debt is either "good debt" or "bad debt." --or so we've been told. "Good" debt is that money owed for things that may assist in building wealth, such as student loans or mortgages. "Bad" debt would be things like credit cards. This is an oversimplification as the differences between "good" and "bad" debt can be better defined, thereby giving us a clearer picture of debt and how to tell what is helpful. 

Here's the rundown on debt: the good, the bad, and the ugly.

Student Loans

Student loans are often necessary, as it's often the only way college education is possible for many Americans. But not all degree programs are equal when considering the debt one acquires and the income potential from that particular degree. A good rule of thumb is

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