Debt-to-income ratio

{
  "id": "MLC-T-LAW-001491",
  "term": "Debt-to-income ratio",
  "field": "Law",
  "definition": "A financial metric that compares an individual's total monthly debt payments to their gross monthly income. Lenders use this ratio to assess a borrower's ability to manage monthly payments and repay new debts. A lower debt-to-income ratio generally indicates a lower risk to lenders, with many mortgage lenders preferring a ratio below 43%.",
  "url": "https://mlchart.com/terminology/law/debt-to-income-ratio/"
}