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Debt-to-Income Ratios and Car Payments

Home Buying Articles and Advice | Home Selling Articles and Advice

When determining your ability to qualify for a mortgage, a lender looks at what is called your “debt-to-income” ratio. A debt-to-income ratio is a percentage of your gross monthly income (before taxes) that you spend on debt. This will include your monthly housing costs, including principal, interest, taxes, insurance, and homeowner’s association fees if any. It will also include your monthly consumer debt, including credit cards, student loans, installment debt, and….

…car payments.

next How a New Car Payment Reduces Your Purchase Price


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