212 Brookfield Road, Sturbridge, MA 10518
You know when you buy a home that your credit score matters, but do you see all of the numbers that matter to your financial picture when you’re buying a home? Your debt-to-income ratio is one of the most critical figures that will influence if you can get a mortgage and what type of rate you can get.
What Is A Debt-To-Income Ratio?
This number is exactly what it states: the ratio of debt divided by your gross monthly income. Your credit report doesn't include any of this income information. This number is actually the best way to see if you’re living within your means or not. This way, your lender will know your monthly debt payments along with your monthly income.
If your ratio of debt is high, you may not get a loan or get less desirable interest rates than if you had lower amounts of debt. Even if you have a high credit score, your debt-to-income ratio could affect these things. In reality, a higher debt ratio will make it harder for you to pay back your debt, so it’s important to you.
How It’s Calculated
You can use an online tool to help you calculate your debt-to-income ratio. You can also use a simple formula if you’re up for doing some math yourself:
Divide your monthly debt payments by your monthly gross income then multiply that number by 100. For example:
Student loans: $400
Car loan: $300
1400/4000= 0.35 x 100= 35%
You should also be aware of something called your household ratio. The household is the amount of home-related expenses which includes property taxes, prospective mortgage, home insurance, and more. These costs are divided by your monthly income to get this ratio as well. Obviously, your household debt adds to your financial commitments and is also put into consideration by your lender.
What’s A Good Debt-To-Income Ratio?
It’s ideal that you keep your ratio less than 36%. Your household ratio should be even lower than this. It’s great to be debt free, but in the real world, that’s not always possible. Your best bet is to be responsible with your finances and work on paying your debt down as much as you can. Then, little by little all of the critical numbers that are required to get a mortgage will fall into place.
Do you have a dog or a cat that you absolutely love? Well, you are not alone. More people than you would imagine actually identify their pets as their best friends. It doesn’t matter if you don’t think of Twinkles as your best friend, you still want her to be safe at your home. Here are a couple of simple ideas that you can carry out to make your home safer and less injurious for your pets.
- Make sure your indoor plants are safe for pets. Plants like aloe vera, ivies and amaryllis are quite toxic for dogs. Lilies have also been shown to cause liver failure in kittens. If you are considering getting a newly potted plant, you might want to ask your vet if it’s safe for your pets before you decide to bring it home.
- Keep all chemicals behind closed doors. It’s not uncommon to find all kinds of chemicals in the house – antifreeze, rodenticides, cleaning products, fertilizers, etc. Remember that pets are by nature rather curious creatures, so make sure all your chemicals are safely stored away behind a closed cupboard, far away from the reach of your pets.
- Keep your trash cans tightly covered. And if it’s possible, keep them outside your home, and if that’s not possible, in a locked cabinet. The trash is usually full of discarded food, small pieces of trash and other waste products that you might not consider dangerous but may be very harmful to your pets.
- Keep your toilet lids down. Small animals have been known to drown in the toilet or poisoned by drinking chemically contaminated water from there.
- Keep your windows properly shut. This is very important, especially if you live in a high rise. If you have to open your windows, you should install a sturdy and robust window screen. Don’t count on the window bars alone; cats can fit through them and dogs can easily open them.
- Don’t leave food or drinks out in the open. Always try to keep food and other edibles out of the reach of your pets. What you may consider a gourmet dish may turn out to be toxic for Tiger. Grapes and raisins can lead to kidney failure in dogs. Caffeine and chocolate are also lethal too. Milk and dairy products can cause indigestion in animals too. For a more comprehensive list of dangerous foods for pets, see the ASPCA website.
When you’re shopping for a new home, make sure to tell your real estate about your pet needs, they can help you find the most pet-friendly properties.
52 Streeter Road, Sturbridge, MA 01518