finance

debt-to-income ratio

The debt-to-income ratio compares a borrower's monthly debt payments to gross monthly income, expressed as a percentage. Lenders often look at two ratios: the housing expense or front-end ratio, which includes only the proposed housing payment (PITI), and the total debt or back-end ratio, which adds car loans, credit cards, student loans, and other recurring debts. Maximum ratios depend on the loan program.