[closeparen]

The metric is DTI (debt to income), and the magic number is 36%. However, this is pretax income, not take home pay.

[dmichulke]

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]

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.