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DTI is a lending measure that compares a borrower’s required monthly debt payments to gross monthly income. It is commonly used in residential mortgage underwriting to evaluate whether a borrower has enough income to support existing debt plus a proposed new housing payment. A low DTI generally indicates stronger repayment capacity; a high DTI suggests the borrower may have limited financial flexibility. In practice, DTI can be misleading if it ignores recurring obligations that function like debt, such as mandatory expenses or unfunded commitments. Your current article makes that same point by distinguishing Sam’s scheduled debt service from his broader mandatory obligations.

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