Final answer:
The standard debt to income (DTI) ratio is a key personal finance measure used by lenders to determine an individual's ability to manage monthly payments. It should not exceed 36% generally, with no more than 28% going towards mortgage or rent.
Step-by-step explanation:
The question pertains to the standard debt to income (DTI) ratio which is a personal finance measure that compares an individual's monthly debt payment to their monthly gross income. The DTI ratio is expressed as a percentage, and lenders use it to assess an individual's ability to manage monthly payments and repay debts.
The general rule for the standard DTI maximum is that your DTI should not exceed 36%, with no more than 28% of that debt going towards servicing mortgage or rent payments. However, this can vary based on the lender and the type of loan. For example, some mortgage lenders may allow for higher DTIs, such as the Federal Housing Administration (FHA) loans which allow DTI ratios up to 43%.