Debt Ratios for Home Financing Shopping for a mortgage? We will be glad to assist you! Call us at (970) 300-2115. Ready to begin? Apply Online Now. The debt to income ratio is a formula lenders use to determine how much money can be used for a monthly home loan payment after all your other recurring debts are fulfilled. To calculate your debt to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. Your gross monthly income is generally the amount of money you have earned before your taxes and other deductions are taken out. For example, if you pay $1200 a month for your mortgage and another $200 for a auto loan and other debts of $500 a month so ($1200+$200+$500=$1900. Your gross monthly income is $5000 then your debt-to-income ratio is 38%.There is a maximum of 43% debt-to-income ratio for a borrower to qualify for a Qualified mortgage. Some lenders will sometimes make loans higher than the 43% debt-to income ratio they will make a reasonable good faith effort to determine the borrowers ability to repay the loan. If you'd like to run your own numbers, we offer a Loan Pre-Qualification Calculator. Don't forget these are only guidelines. We will be happy to pre-qualify you to help you determine how large a mortgage loan you can afford. Hamlet Financial Corporation can walk you through the pitfalls of getting a mortgage. Call us: (970) 300-2115. Got a Question? Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy. Your Information * Name: * Email: Phone: Your Question Question: SMS Messaging: By checking the box, you agree that Hamlet Financial Corporation may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices.. Message/data rates may apply. Submit