If you are thinking about buying a house, you might be wondering, “how much house can I afford?” There is a significant distinction between what the bank will lend you versus what you can afford to pay. In general, a good rule of thumb is to pay less than 25% of your income toward your monthly … Read more How Much House Can I Afford to Buy?
Debt-to-Income Ratio, or DTI ratio, is how a bank or lender determines what you can afford to borrow. It is a way to assess your ability to pay back the loan based on your income and other debt obligations. If your DTI ratio is too high, then you’re a risky borrower and may not qualify … Read more How to Calculate Debt-to-Income Ratio (DTI Ratio)