Discover the Golden Ratio for personal finance – a powerful tool to evaluate your spending, saving, and debt habits.

Before you take out a personal loan, there are certain key terms you should know. These are some of the most important ones, ...

Staff Deputy Personal Finance Editor, Buy Side from WSJ. ... But if your back-end ratio is more than 45%, you’ll need a higher credit score or larger down payment to compensate.

Then they use your financial information to determine if you can afford a new loan or credit line. The formula they use to make their determination is called the debt-to-income (DTI) ratio.

Mortgage-to-income ratio is a metric used by lenders to see how much of your income goes toward debt payments. MTI is a type of debt-to-income ratio, and mortgage lenders generally look for an MTI ...

There's no shortage of budgeting and spending rules when it comes to personal finance. One says you shouldn't spend more than 30% of your monthly income on housing. Another says to always save 10% ...

Liquidity ratios, such as the debt-to-equity (D/E) ratio, which compares total liabilities to total shareholder equity, can evaluate a company's financial health.

Borrowers who maintain high credit scores and low debt-to-income ratios have the best chances at getting a low personal loan rate. Many, or all, of the products featured on this page are from our ...

The lower the DTI ratio than 35%, the better your chances of getting a personal loan. If the DTI exceeds 35%, the bank will scrutinise your personal loan application and documents more closely.

Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas. Learn about our Financial Review Board Fact checked by ...