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Gross income. But for personal reference, basing it on net income could give yourself a clearer picture. For e.g. Income after deducting tax.

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Q: When refinancing a home is the debt to income ratio based on gross income or net income?
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Is debt to income ratio based on gross or net income?

Gross income. It doesn't make sense if it is based on a net income (adjusted for expenses) since it measures how much of debt is paid out of your income.


How do you culculate the gross spread ratio of a bank?

Gross Spread for Banks = (Net Markup Income/Gross Income)


Does one's Debt to Income Ratio affect the refinancing of a home?

Yes. Your debt to income and available credit ratio is used to determine your credit score. You credit score is an indication to the finance company of your credit-worthiness.


Is there a place I can find a debt to income ratio calculator online?

There is a formula to find debt to income ratio online it is total recurring debt divided by the gross income. Refer the sites www.bankrate.com , www.money -zine.com ,www.consumercredit.com


How do you figure gross magin ratio if net sales is 28496 million its cost of good sold was 19.092 million and net income is 997 million?

Gross margin ratio = (sales - cost fo sales) / sales Gross margin ratio =( 28496 million - 19092 million ) / 28496 million


How do you calculate gross margin ratio?

gross margin ratio is calculated as >GROSS PROFIT/NET SALES


Where is gross profit ratio found?

[Gross Profit Ratio = (Gross profit / Net sales) × 100]


How much income do I need to buy a home?

It depends on your recurring monthly debt (minimum monthly payments). This number divided by your gross monthly income give you your debt-to-income ratio. This ratio can be no higher that 57 (but in most instances 45) with the proposed new mortgage payment in order to qualify.


How much income do you need to buy a house?

It depends on your recurring monthly debt (minimum monthly payments). This number divided by your gross monthly income give you your debt-to-income ratio. This ratio can be no higher that 57 (but in most instances 45) with the proposed new mortgage payment in order to qualify.


What is a monthly debt to income ratio?

A Debt-to-income ratio is a ratio that the banks calculate and take into account to examine your loan eligibility via your gross monthly income. Here, the higher the DTI ratio, the lower the chances of you getting approved for a fresh loan In simple words, prior to the bank approving your loan application, they would examine your repayment capacity via calculating the debt-to-income (DTI) ratio. Mostly calculated in percentage, the DTI ratio is obtained simply from your net monthly debt payments (such as credit card bills, education loans, auto loans, personal loans, etc), by your gross monthly income. I've read a blog on this topic Debt To Income Ratio for more detailed understanding visit this blog. propertygeek.in/what-is-debt-to-income-ratio-a-complete-guide/


What is income ratio in mutul fund industries?

income ratio of a mutual fund is defined as a ratio of net investment income to its average net asset value.


Can you change your debt to income ratio?

Your debt-to-income ratio is your total monthly debt obligations divided by your total monthly income. Increase your income or lower your debt payments to have a more favorable debt-to-income ratio. How do the credit companies know your income?