Calculate Your DTI, Get Your Strategy
Everything depends on one number: your Debt-to-Income (DTI) ratio. This calculator tells you exactly where you stand and what to do next.
DTI Calculator
Enter your monthly numbers below. Your personalized strategy will appear automatically.
Understanding DTI Ranges
Here's what your DTI percentage actually means for mortgage approval.
Your Strategy Based on DTI
No more guessing. Here's exactly what to do based on your DTI range.
Your debt is already low enough. Speed is more important than perfection.
You're in the sweet spot. Balance helps you progress on both fronts.
Your DTI is limiting approval. Debt reduction needs to be the priority.
Approval is very unlikely. Debt must come first-then you can save.
Which Debts to Pay Off First
Not all debt is created equal. This hierarchy shows you what to attack first, ranked by mortgage impact.
Balanced Approach Calculator
If your DTI is 30-40%, this shows you exactly how to split your extra money for maximum progress on both fronts.
Lower DTI and bigger down payment. That's how the balanced approach works.
How Real Buyers Made This Decision
Three Dallas-Fort Worth buyers with different DTI situations. See which path matches yours.
Jessica's Story
The Problem: Jessica's teacher salary meant her DTI with a mortgage hit 50%-automatic denial territory. Her credit cards were killing her budget at $185/month in minimums alone.
Her Strategy (Debt Payoff Priority)
The Result
Jessica closed on a $250,000 townhouse in Garland 14 months after starting. Final DTI: 36%. Down payment: $8,750 (3.5% FHA). Kept student loans and car payment.
Marcus's Strategy
The Advantage: Marcus had $60,000 in total debt but a tech salary that meant his DTI was only 28%. Even with a mortgage, he'd only hit 41% DTI-well within approval range.
His Strategy (Down Payment Focus)
The Result
Marcus bought a $320,000 home in Frisco with 10% down ($32,000) after just 10 months. DTI at closing: 41% (approved easily). He still carries $45,000 in student loans.
Sarah and Mike's Path
The Sweet Spot: Sarah and Mike were in the perfect position for a balanced approach. Their 38% DTI meant approval was likely, but there was room for improvement.
Their Strategy (Balanced Approach)
The Result
After 12 months, they closed on a $285,000 home in North Richland Hills with 5% down ($14,250). Credit card debt eliminated: $4,800. Final DTI: 32%.
Debt Payoff Strategies Explained
Four proven methods. Different psychology. Same goal. Pick what works for you.
| Method | How It Works | Pros | Cons | Best For |
|---|---|---|---|---|
|
Debt Avalanche
Highest interest first
|
Pay minimums on everything. Attack highest interest rate first. Move to next highest when paid. |
|
|
Math-motivated people who value optimization over psychology. |
|
Debt Snowball
Smallest balance first
|
Pay minimums on everything. Attack smallest debt first regardless of rate. Build momentum. |
|
|
People who need quick wins to stay motivated. |
|
DTI-Focused
Highest payment first
|
Pay minimums on everything. Attack highest monthly payment first. Lowers DTI fastest. |
|
|
Buyers with DTI over 40% who need to qualify soon. |
|
Hybrid Approach
Small debts then avalanche
|
Knock out 2-3 small debts for momentum, then switch to avalanche for the rest. |
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|
Most people (recommended) |
The Hybrid Approach works for most first-time buyers. Pay off 2-3 small debts quickly (under $1,000 each) for psychological momentum, then switch to highest-interest-first for the rest.
30-Day Action Plan
Turn this framework into action. Here's exactly what to do, week by week.
The Uncomfortable Truth About Debt
Everyone has debt. The median first-time homebuyer in DFW carries $32,000 in total debt when they purchase. You don't need to be debt-free to buy a home. You need your DTI low enough to get approved-and a clear strategy to get there. Stop comparing yourself to an imaginary perfect buyer with zero debt. That person doesn't exist. Focus on the strategy that works for YOUR situation.