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Clarity Group Midwest

Debt Service Ratio Versus Debt Safety Ratio

"The debt service ratio and debt safety ratio are tools designed to gauge your ability to repay debt. Both the debt service ratio andthe debt safety ratio compare your loan obligation to your monthly income. Your debt service ratio compares your total monthlyloan payments to your gross monthly income, while your debt safety ratio compares your monthly consumer debt payments toyour monthly take-home pay. These are important calculations for two reasons..."

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Check the background of this financial professional on FINRA's BrokerCheck