help me understand debt/income ratios.

[Southern_Lenders]

I'm starting a lending business, and need to understand the concept of Debt/Income
ratios. Now I know there are many calculatiors out there. Not looking for that. What
I'm trying to figure out is how much I can loan a client if:

the rate is 5.25% a MONTH (APR? ) for 8 months, and the client has a d/i ratio of 46%

Thanks for any help

- Nathan

[Southern_Lenders]

anyone....

[DerekS]

Not to be a dick, but if you're just learning about DTI ratios, you may want to hold off on lending. I know mortgage lenders use software to "underwrite" loans on the fly (prior to actual underwriting of the loan.)

As for your question about DTI, Wikipedia is always a great start:

Debt-to-income ratio - Wikipedia, the free encyclopedia