USAA / Wiping Out Debt ? Q&A's from USAA's Webinar

https://www.usaa.com/inet/ent_utils/McStaticPages?key=advice_wiping_out_debt_Q_and_A


I like this info:

"Q: I thought debt-to-income ratio was determined without the mortgage payment. Your slide indicated otherwise.
Laura

A: You have a hawk eye. During the webinar, I illustrated the "total debt-to-income ratio" which is all debt payments (including mortgage) divided by your gross monthly income. That number should not exceed 36%. There's another ratio you can check out called the "debt-to-income ratio." It is total monthly debt payments without housing expenses divided by net monthly income. This ratio should not exceed 20%. This simpler ratio could be used by service members living in on-post housing. There's actually a third ratio called the "housing ratio." It is simply all housing costs totaled including principal, interest, taxes and insurance divided by your gross monthly income. This ratio should not exceed 28%. You sort of opened up a can of worms!"

my total debt-to-income ratio = 49.27%

my debt-to-income ratio = 14.3%

my housing ratio = 36.04%

It's clear that my house payment is a bit disproportionate; this could be remedied, though. Low debt-to-income ratio helps.