how lenders use front end dti ratio
lenders use both front end and back end debt to income ratios to determine your ability to repay a home mortgage loan a higher dti can signal to lenders that you might be stretched thin financially while a lower dti suggests that you have more disposable income each month that isn t going to debt repayment 1debt to income ratio is just one part of the puzzle however lenders can also look at your income assets and employment history to gauge your ability to repay a mortgage loan debt to income ratios can play a part in decision making for purchase loans as well as mortgage refinancing paying off credit cards student loans or other debts can improve your back end debt to income ratio and potentially increase the amount of home you re able to afford special considerations