Mortgage lenders use debt-to-income ratio (DTI) to ensure you're not being over extended with
your new loan. The DTI is a percentage of the total of all "minimum" monthly debt divided by your gross
monthly income. The debt-to-income calculator takes in to account your annual income and monthly debts to
determine your debt-to-income ratio.
Lenders can also use different variations of your DTI to help them calculate risk. This
calculator also provides you with your "front-end" DTI and "back-end"
DTI. The "front-end" DTI calculates how much of a person's gross income is going towards housing costs.
In contrast, a "back-end" DTI calculates the percentage of gross income going towards other types of debt
like credit card or car loans.
DTI is only one of the factors that lendors look at. In addition to DTI; credit score, total
assets, and LTV (loan-to-value) are also used to determine how much home a person qualifies for. Lower numbers
are better; usually a DTI under 36% will help you qualify for most loans. A DTI of 20% or below is considered
Enter Your Info Here
Getting Started with Undebt.it
Add Your Debts:
The first thing you'll need to do is add your debt account information so Undebt.it can show you when you'll be
debt free. The Account List is where you
go to add or edit your account info. You can add as many debts as you want, there's no limit.
The Important Stuff:
All of the debt management tools are located in the in the My Debts menu item towards the top of the
page. This menu item is only visible when you are logged into your account. The Dashboard page
is where you'll be spending most of your time once you get going. You can quickly & easily record your payments and see a summary view
of your accounts.
Adjust Your Monthly Budget Amount:
(Optional) If you want to see how much of an effect a higher monthly payment will have on your debt free date,
just change the budget amount on the Debt Snowball Table page, you can always change
it back at any time. Make sure your monthly budget amount is more than the total of your minimum payments for this to
work right. You can also change your budget on the My Account page.
Change the payoff method:
(Optional) By default, Undebt.it uses the standard
Debt Snowball payment method, which is when the accounts with the lowest balance are paid off first. You also have the option
to use the Avalanche method if you like; it pays off accounts with the highest interest rates first. Try them both
and see which one works best for you. You can also choose to use one of the other supported methods, like the custom payoff plan if you like.
The Debt Snowball Table page shows the detail of each months' payment and will help you visualize
your payment schedule. The Debt Comparison page shows you the payment plan and debt free date for each of the methods using your actual account info.
Check Your Progress:
After you've been using the program for a while, be sure to check in on your payoff progress. This page shows you several
pieces of important information in one place. The main part of the page shows you progress bars for each of your account along with an overall progress
graph. The second part of the page shows you some distribution information about your debts; like what type of debts they are and what type of interest
rate percentages you are paying.
Try out Undebt.it+:
(Optional) Turbo charge your personal finance management with
Undebt.it+. For a very small yearly fee, you can get access to the complete suite of applications and bonus features on the site. The fees collected from the
sales of memberships help pay for website hosting costs and other expenses. There's a free, no obligation, no card required 30-day trial you can
enable to see if Undebt.it+ works for you.
Want to Track Your Bills Too?:
Undebt.it+ offers access to the bill management module which allows you to keep track of your recurring,
non-debt monthly/yearly bills. Bill management supports recurring bills every x months or years.
Autopay support is in there too, so you don't need to manually create bills and payments. There is even a
52-week savings challenge component as well. See the
How to Use the Bill Management Module
blog page for more details.
Need More Info?:
Visit the FAQ & Help Center for the answers to common questions. You can also download
the Undebt.it user guide. It has plenty of step-by-step instructions and screenshots.