DO you know your debt to ratio ?

Many people do not know what debt to ratio means. Debt to ratio means the total monthly payments divided by the total monthly gross income.If the ratio is over 50 % the banks may not approve your loan.


Remember in you calculations you must include the following:

Gross Monthly Income

Salary
Child support
Bonuses
Alimony
Commissions
Spouse Salary
Other
Child Support
Total Income



Monthly Fixed Income


Rent or Mortgage
Automobile
Automobile
Alimony
Child Support
Bank Installments
Other


Before taxes Proposed Loan Payment
Total Payments


Evaluate your situation abnd see what ways you can decrease the amounts.You may even have to have a home based business to help with the income.


So what do you do ? Contact the lending institution before apply for any credit to determine what their debt to ratio polices are.