What is the maximum number of payments remaining on a debt for it to not count in the Debt to Income ratio?

The correct answer is based on the guidelines used when calculating a borrower's Debt to Income (DTI) ratio, which is a critical factor in mortgage lending. For a debt not to be included in the DTI calculation, it typically must have a certain number of payments remaining. In this case, debts with 10 or more payments left are generally included in DTI calculations, while debts with 9 or fewer payments can often be excluded.

This practice helps lenders assess a borrower's financial situation more accurately. By excluding debts that are nearly paid off, lenders can provide a more favorable DTI ratio, potentially qualifying borrowers for better loan terms or approval. Understanding the implications of the remaining payments on a debt is crucial for both borrowers and lenders in effectively managing financial risk.