Quote:
Originally Posted by Canehdianman
Debt to income is calculated using TOTAL debt and ANNUAL income. The cost to service your total debt is (hopefully) less than your annual income.
My debt to income is well over 100%, but that's because I have a mortgage. Thankfully, my bank doesn't expect me to pay my mortgage off in one year.
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So in a sense, the only reason why our debt/income is higher than other years is because more people own their own homes or homes are just overpriced.