The ratio is determined by weighing your total debt against total income. For example, if your income is $100,000 annually and your debt totals $30,000, then your debt-to-income ratio is 30%. There is no maximum debt-to-income ratio on conforming loans and 38% to 50% on jumbo loans—the range depends on the loan program. In some cases, F&M Mortgage Group has approved loans with that hover at 70%.

The following is a list of some of the most frequently asked questions many of our buyers have during the loan process.

A standard ratio used by lenders limits the mortgage payment to 28 percent of the borrower's gross income and the mortgage payment, combined with all other debts, to 36 percent of the total. The fact that some loan applicants are accustomed to spending 40 percent of their monthly income on rent -- and still promptly make the payment each time -- has prompted some lenders to broaden their acceptable mortgage payment amount when considered as a percentage of the applicant's income.

A lender may tell you that its qualifying ratios are 28/36. The 28 means that 28% of your gross monthly income can go toward housing expenses described above. The 36 means that 36% of your gross monthly income can go toward all of your monthly debt, including housing debt. This amount is often referred to as the "total debt-to-income ratio" or "back-end ratio". This can include monthly payments on credit cards, installment loans (auto, student loans, etc.

This is the ratio used to determine how much of a mortgage you can afford. This is calculated by dividing your monthly obligations by your monthly income.

The debt to income ratio is your total monthly housing expense plus any recurring debts (i.e. monthly minimum credit card payments, car payments, student loan payments, etc.) divided by your monthly gross income.

Your income and outstanding financial debts make up your income-to-debt ratio. This helps the Lender to determine whether you qualify to repay the proposed loan. In order to determine that the Lender adds your total monthly loan payments &/or the proposed loan and divide with by the gross monthly income to determine your ratio. If the ratio falls within a particular range, you may qualify for the loan.

In order to minimize the chances of borrowers' getting in over their heads financially, most of the lending industry has agreed that a borrower's monthly housing expense should not be greater than 28% of the borrower's gross monthly income (income before taxes).

The maximum income listed in the FMR chart is the maximum income for each apartment size that a tenant can have to be eligible for a subsidy from the Section 8 program. In other words, tenants with incomes above the maximum income would not receive a subsidy and would pay FMR. A tenant with income below the maximum would only pay 30% of his income for rent.

The FHA allows you to use 29% of your income towards housing costs and 41% towards housing expenses and other long-term debt. With a conventional loan, this qualifying ratio allows only 28% toward housing and 36% towards housing and other debt

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A high debt-to-income ration means that you're a riskier customer for a creditor. So before you apply for a loan, work on getting your debts paid down. This includes consumer loans, credit cards and even student loans. If you do have to apply for a loan before you pay down your debts, you may still be approved for the loan, but it will most likely have a higher interest rate.

It is obtained by dividing the monthly debts by the gross monthly income. It is used to qualify borrowers on full doc and stated income programs. The front ratio is the total house payment (P.I.T.I.) divided by gross income, the back ratio adds other installment or revolving debt to the P.I.T.I. then divides by the gross income.

a 50:1 contention potentially 49 other people will be using your line to the exchange at the same time as you, thus slowing your connection speed considerably (512 divided by 50 = 10.24). In reality, you would not expect more than a handful of other users to be contending for the line in this way at any given moment. Reducing the contention rate on the line is a way of guaranteeing that a smaller number of users could potentially use your line, and thus slow down your connection speeds.

The aspect ratio is the shape that a movie or program has been shot in, the number indicates how much wider the picture is than it is high. There are two different ways to express this, one is generally used for television & the other for film ? both essentially mean the same thing. In television there are two common aspect ratios - 4:3 & 16:9. 4:3 means the image is 4 units in length & 3 units height. 16:9 means the image is 16 units in length & 9 units in height.

One of the many reasons people file for bankruptcy is to obtain a discharge of debt. A discharge is a court order which states that you are not responsible for the debts any more. Some forms of bankruptcy may discharge all of your debt. Other forms of bankruptcy can create a way to pay some or all of your debt over a period of time, not to exceed five years.