Do You Know Your Debt-to-Income Ratio?

debt-to-income-ratio
One of the contributing factors to the nationwide subprime mortgage crisis in the mid-2000s was the fact that Americans were accumulating more debt than ever before. That wasn’t the only factor, mind you. But from 1990 to 2007, the average ratio of household debt-to-income, including mortgage related debt, rose from 77% to 127%. What is debt-to-income ratio? It is a calculation used by lenders to determine your risk as a borrower. This is good intel to have about yourself before you set out Read more [...]