SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
MillerSearles
840 West Hamilton Street, Suite 320
Allentown, PA 18101
Phone: 610-437-1000
Website: www.millersearles.com
August 2024
How Lenders See You
Lenders often determine an individual’s creditworthiness by looking at that person’s debt-to-income ratio. If the ratio is considered acceptable, it’s more likely that lenders will make the loan. Calculating the ratio can provide insight into the state of your financial health. Here’s how to calculate your ratio.
Start by adding up all of your monthly debt obligations — mortgage, auto, and other loan payments, as well as minimum credit card payments. Next, divide that amount by your gross monthly income. That’s the amount of money you earn before taxes and other deductions are taken. Income generally includes your pay, investment income, and self-employment income.
If you multiply the ratio by 100, you’ll get the ratio as a percentage. If your ratio seems high, it may be time for you to take some action to lower it. Paying down credit cards or other debt is a good starting point.
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.