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closeparen
on Feb 27, 2018
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How I Used Eve Online to Predict the Great Recessi...
The metric is DTI (debt to income), and the magic number is 36%. However, this is pretax income, not take home pay.
dmichulke
on Feb 27, 2018
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Can you tell me why DTI should be <= 36%? Is it a fixed value of some regulation or is there a formula behind it?
closeparen
on Feb 27, 2018
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It’s a standard used by mortgage underwriters, presumably based on analysis of decades of past mortgages they’ve written and calibrated to balance their risks and rewards for maximum profit.
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