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Debt-to-Income Ratios and Car
Payments
When determining your
ability to qualify for a mortgage, a lender looks at what is called
your "debt-to-income" ratio. A debt-to-income ratio is the
percentage of your gross monthly income (before taxes) that you spend
on debt. This will include your monthly housing costs, including
principal, interest, taxes, insurance, and homeowner’s association
fees, if any. It will also include your monthly consumer debt,
including credit cards, student loans, installment debt, and….
…car payments.
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