Definition, Meaning & Synonyms

dti

Financial term

ˌdiːtiːˈaɪ

Definition

DTI refers to Debt-to-Income ratio, a financial term that measures an individual’s monthly debt payments against their gross monthly income.

Examples

When applying for a mortgage, lenders often look closely at your DTI to evaluate your financial stability.
My DTI improved after I paid off my credit card debt, making it easier to get approved for a loan.

Meaning

In personal finance, DTI is used by lenders to determine how much of a borrower’s income will go towards paying off debts, helping assess the borrower’s ability to manage monthly payments and repay debts.