Leverage a low Debt-to-income ratio with your credit score

Your debt-to-income ratio is exactly what it sounds like: the amount of debt you have compared to your overall income.

To calculate your overall debt-to-income ratio add up all of your monthly debt. Take this total and divide it by your gross monthly income from all sources.

While debt-to-income ratios don't have the kind of buzz that credit scores do, they can play a key role in determining if you qualify for a loan and how much you can get.

While other factors, such as your credit score and length of time in your home or job, will come into play into this equation, a good debt-to-income ratio can give you leverage to negotiate if other factors aren't in your favor.

To learn more or to get a great rate online contact us at Midwest Mortgage

Midwest Mortgage