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2 Personal Debt to Income Ratios to Know


Front-End Ratio

Indicates the percentage of income that goes toward housing costs, which for homeowners includes PITI (principal, interest, taxes and insurance premiums). Homeowners Association dues would be included in this ratio as well. Housing shouldn't exceed 28% of gross monthly income.

Back-End Ratio

Indicates the percentage of income that goes toward paying all recurring debt, including those covered by the Front-End Ratio, and other debts such as credit card payments, car loan payments, student loan payments, child support payments, alimony payments and legal judgements. Maximum for this ratio should be 36%.

Front-End Back-End Ratios


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