TPO: System Calculations - Debt-to-Income Ratio

The borrower’s Debt-to-Income (DTI) ratio represents the proportion of the their monthly income that is paid towards their debts and liabilities. This is an important metric used by lenders to determine the ability of borrowers to make their mortgage payments. The system will automatically calculate the borrower’s DTI based on their credit report and the information provided about their income in the loan application.

Where is the DTI Ratio Displayed?

The borrower’s DTI ratio can be found on the “Loan Details” page. This figure is re-calculated every time the loan application receives an input that affects the borrower's income or liabilities.

This table displays the following calculated DTI values by loan type:

DTI - this figure represents the ratio of the borrower's new monthly mortgage payment and their liabilities (using the note rate) to their total monthly income   Qual DTI - this figure represents the ratio of the borrower’s new monthly mortgage payment (using their qualifying rate) and their monthly liabilities to their total monthly income   Housing - this figure represents the ratio of the borrower's new monthly mortgage payment by their total monthly income.

The borrower's DTI also appears in the contextual bar when users are on the "Pricing Results" page

DTI - Shop for Rates

On the "Shop for Rates" page, DTI also appears as a pricing parameter in the Qualifying Information section. Users with the appropriate privilege can edit this value.