What is your debt-to-income ratio? Don't know? Don’t care? Do you plan on buying a car and getting a loan to do so? Do you plan on buying a house? If the answer is yes, you should definitely care what your debt-to-income ratio is.
Why is your debt-to-income ratio an important factor when looking to borrow money?
Before a lender approves you for a loan, they calculate your debt-to-income ratio. This gives the lender an idea of your ability to pay your monthly debts and take on a new loan. L... [More]
So, you’re trying to line up financing for that luxury car you’ve always wanted; or that new addition on the house your wife has been “gently” reminding you of; or how about the new sports boat to take the kids water skiing every other weekend? Well, in order to make any of these things happen, most of us turn to our friendly local bank to inquire about a loan to turn our dreams into a reality. Your average banker will often tell you that yes, they finance such requests a... [More]