Mortgage DTI Ratio Calculator

Calculate Your Front End & Back End Debt to Income Ratios

Monthly Gross Income:
Spouse's Monthly Income (after taxes):
Other Monthly Income:
Monthly Rent or Mortgage Payment:
2nd Mortgage Payment: (optional)
Monthly Vehicle Payments:
Monthly Student Loan Payments:
Other Monthly Consumer Loan Payments:
Minimum Monthly Credit Card Payments (Visa, Mastercard, Amex, etc.):
Other Monthly Payments:
Pending Monthly Loan Payments:
Your Total Income:
Monthly Home Payments:
Frontend Debt to Income Ratio:
Your Total Monthly Payments:
Backend Debt to Income Ratio:

 

Current Mortgage Rates

 

Home Buying Process.

 

Why Backend DTI is Important

Historically lenders have typically preferred new home buyers to have a back-end DTI ratio somewhere below the 40% to 42% range. If overall debt payments consume too much of your paycheck then you do not have much flexibility to deal with unforeseen circumstances. Those who have a significant buffer & plenty of disposible income are seen as good credit risks to lend money to. Those who are seen as a poor credit risk may not be extended credit, or they may be offered funding at a significantly higher rate of interest.

Rising Debt Limits

Due to rising student loan debt, in 2017 the backend DTI limit has been lifted to 50% by Freddie Mac, Fannie Mae & the FHA. People who are close to the limit may need to show other positive attributtes (like a large downpayment, a high FICO credit score and/or a stable employment history) to qualify for funding.

Front End vs Back End DTI

This calculator shows your frontend & backend debt to income ratios. Historically lenders have preferred the front end ratio to be below 28%. The calculation for the front end ratio is quite similar to the calculation for the back end ratio. The main difference is the front end ratio looks only at your mortgage & housing related payments for calculating the debt load, while the backend ratio also includes all other monthly debt obligations along with the housing expenses.

Estimating Your Mortgage Payments

Below this calculator there is a table listing local mortgage rates which can be used to help you estimate your mortgage payments for a given home price & down payment.