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Debt-to-Income Ratio

Your debt-to-income ratio is the percentage of your gross income required to cover your housing and debt payments. The lower your debt-to-income ratio, the more manageable your debt load will be. A low debt-to-income ratio increases the odds that you will be able to meet your monthly obligations. This ratio and your credit score are the two most important factors used by creditors when extending loans and credit.

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