Debt to Income Ratio Calculator is a useful software program that is being used by banks and financial institutions to calculate DTI ratio of the loan applicants. It determines the loan amount that each applicant is entitled to. DTI ratio is a valuable number when one applies for any type of loan. It represents the amount of debt compared to total income of a person. To qualify for loan, a person should have low DTI ratio, which means that total debts should be less than total income. The lower the DTI ration, the more easy it is to get approval of loan application. Ratio between 37% and 45% is considered safe by the money lenders, whereas applicants with more than 50% DTI ration find it difficult to get loan approved. To lower debt-income ratio, one can add a co-borrower or lower one's debts to qualify for loan approval by banks, money lenders and financial institutions.
Debt to income calculator is also used as Debt Reduction Software. The first step is to find out the amount of total debts. Then, the total income is calculated and DTI ration is found out by filling up total income and debts. With DTI ratio, one can easily find how much debt is owed to others. Based on the level of income of the person, it can also be decided whether the debt can be paid off with available resources or it requires to be consolidated for a loan at a lower rate of interest. Debt to income ratio shows that how well a person can manage his debt obligations.
Some high-rated debt to income calculators also give users useful tips on how they can reduce their debts or improve their chances of getting loan application approved. These applications are compatible with iPhone and android 2.2 and up. The best debt to income ratio calculator is the one which is easy to use and calculates the ratio while-on-the-go without any long procedure or complications. It should be user-friendly and simple to operate. LoanQual by Steven Woods is an excellent application that easily calculates DTI ratio. You can easily download it on your iPhone or Android mobile phone.This application is simple to use and you can download it from Play Store or iTunes. It is compatible with android version of 2.2 and up. You just need to download it and get your debt to income ratio while on the go. With this user-friendly app, you get an idea of whether you qualify for personal loans, student loans, home financing or not, before completing an application
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