Making a loan decision: 4 steps

From monthly payment to total interest cost to debt-to-income ratio -- the four numbers you need before signing anything.

1

Calculate your monthly payment

Determine principal and interest costs.

2

See the full amortization schedule

See how payments split between interest and principal over time.

3

Check your savings rate

Confirm you have enough cushion before taking on new debt.

4

Check your debt-to-income ratio

Ensure your total DTI stays within lender approval guidelines.