Editing Debt (section)

=== Income metrics ===
The [[debt service coverage ratio]] is the ratio of income available to the amount of debt service due (including both interest and principal amortization, if any).  The higher the debt service coverage ratio, the more income is available to pay debt service, and the easier and lower-cost it will be for a borrower to obtain financing.

Different debt markets have somewhat different conventions in terminology and calculations for income-related metrics.  For example, in mortgage lending in the United States, a [[debt-to-income ratio]] typically includes the cost of mortgage payments as well as insurance and property tax, divided by a consumer's monthly income.  A "front-end ratio" of 28% or below, together with a "back-end ratio" (including required payments on non-housing debt as well) of 36% or below is also required to be eligible for a conforming loan.