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The "Debt to Income Ratio" is the ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her gross monthly income.
This ratio is used to determine the lending worthiness of a consumer looking for a loan. If you have too much debt and your ratio is too high, then you will have a harder time getting approved for a large loan to buy your dream house in California.
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