The metric is DTI (debt to income), and the magic number is 36%. However, this i... | Hacker News

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		closeparen on Feb 27, 2018 \| parent \| context \| favorite \| on: 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 [–]

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 | [–]

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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