Debt ratio

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Your debt ratio is a percentage that shows how much of your monthly income goes toward paying off debt. Most lenders do not want to give you a loan that would push your total debt ratio beyond about 38%. Debt ratios are usually one of the major factors that determine how large of mortgage you will qualify for.

Monthly Income/Monthly Payments = Debt Ratio

Debt ratio
Debt Ratio is a financial ratio that indicates the percentage of a company's assets are provided via debt. It is the ratio of total debt (the sum of current liabilities and long-term liabilities) and total assets (the sum of current assets, fixed assets, and other assets such as 'goodwill'). (
A ratio used to assess the organization's ability to meet its long-term obligations. This ratio is useful in forecasting an organization's long-term solvency. The debt ratio is calculated by dividing total term debt by total capitalization. (
The comparison of a buyer's housing costs to gross or net effective income. (
A solvency ratio measuring the total debt level of a business. The debt ratio is calculated by dividing total liabilities by total liabilities plus net worth. Values greater than 1.0 indicate the business has negative net worth (is insolvent). (
Measure used by lenders to gauge the ability of a borrower to repay a mortgage. The measure takes two forms. The housing debt-to-income ratio reflects how much of a borrower's income goes toward paying the mortgage. ... (
The ratio of the issuer's general obligation debt to a measure of value, such as real property valuations, personal income, general fund resources, or population. (
the subject of one of the fiscal convergence criteria laid down in Treaty Article 104c (2). It is defined as the ratio of government debt to gross domestic product at current market prices, where government debt is defined in Protocol No. ... (
Debt / Total Assets—measures the portion of a company's capital that is provided by borrowing. A debt ratio greater than 1.0 means the company has negative net worth, and is technically bankrupt. This ratio is similar, and can easily be converted to, the debt to equity ratio. (
a ratio that compares the total of all monthly debt payments (mortgage, real estate taxes and insurance, car loans, and other consumer loans) to gross monthly income. (
Your earnings compared to how much you owe. (
Total debt divided by total assets. (
is one factor used to determine whether a company is permissible as an investment for Muslims. Debt ratio measures how much interest a company pays on money it owes to creditors. If a company's debt totals one-third or more of its assets, its stock is generally considered haram. (
The customer's monthly obligations divided by their monthly gross income. See also Back End. (
Also known as Debt-to-Income ratio. A comparison of the total monthly payments of all of the borrower's debts (including the mortgage) with the gross monthly income of the borrower, used to assess borrower's ability to pay mortgage. ( One of several financial calculations performed by your lender to determine if you can afford a particular monthly payment. The debt ratio is the sum of all of your monthly debt payments including your total monthly mortgage payment divided by your total monthly income.(