DEFINITION of 'Financial Obligation Ratio  FOR'
An estimate of the ratio of debt payments to disposable income. The types of debt included in the financial obligation ratio include mortgage payments, credit cards, property tax and lease payments. For a homeowner, the FOR may also include homeowners' insurance and rental payments on tenantoccupied property. The FOR figure is released by the Federal Reserve each quarter.
Next Up
BREAKING DOWN 'Financial Obligation Ratio  FOR'
The financial obligation ratio covers a broader range of debt types than the household debt service ratio (DSR). The higher the FOR, the higher the risk that households will be unable to meet their financial obligations and the less likely an individual will be approved for new loans or an increase in available credit.
RELATED TERMS

Cash Available For Debt Service ...
A ratio that measures the amount of cash a company has on hand ... 
Obligation
The responsibility to meet the terms of a contract. If an obligation ... 
Term Payment Plan
An option for receiving reverse mortgage proceeds that gives ... 
Debt Ratio
A financial ratio that measures the extent of a companyâ€™s or ... 
BackEnd Ratio
A ratio that indicates what portion of a person's monthly income ... 
Effective Debt
The net sum of all of a company's outstanding debt. In addition ...
Related Articles

Credit & Loans
8 MustHave Numbers For Evaluating A Real Estate Investment
These calculations can help you figure out if a particular property will be a valuable investment. 
Trading Strategies
Financial Ratios to Spot Companies Headed for Bankruptcy
Obtain information about specific financial ratios investors should monitor to get early warnings about companies potentially headed for bankruptcy. 
Credit & Loans
Mortgage Basics: Costs
By Lisa SmithPeople generally think about a mortgage in terms of the monthly payment. While that payment represents the amount of money needed each month to cover the debt on the property, the ... 
Credit & Loans
Understanding the Mortgage Payment Structure
We explain the calculation and payment process as well as the amortization schedule of home loans. 
Investing Basics
Understanding Leverage Ratios
Large amounts of debt can cause businesses to become less competitive and, in some cases, lead to default. To lower their risk, investors use a variety of leverage ratios  including the debt, ... 
Options & Futures
Be MortgageFree Faster
Getting rid of this debt faster has bigger benefits than you might think. 
Credit & Loans
Debt Ratios: Overview Of Debt
By Richard Loth (Contact  Biography)Before discussing the various financial debt ratios, we need to clear up the terminology used with "debt" as this concept relates to financial statement presentations. ... 
Fundamental Analysis
How to Calculate a Coverage Ratio
In broad terms, the higher the coverage ratio, the better the ability of the enterprise to fulfill its obligations to its lenders. 
Fundamental Analysis
Analyzing Investments With Solvency Ratios
Solvency ratios are extremely useful in helping analyze a firmâ€™s ability to meet its longterm obligations; but like most financial ratios, they must be used in the context of an overall company ... 
Insurance
Insurance Tips For Homeowners
Use these simple ideas to save money and get better coverage for your house.
RELATED FAQS

What is a good debt ratio, and what is a bad debt ratio?
Learn about the factors that influence how investors and lenders evaluate the debt ratio for a company and why the answer ... Read Answer >> 
Over what duration should I be evaluating a company's total debt to total assets ...
Learn what duration to use when analyzing the total debt to total assets ratio in a company and how to track a company's ... Read Answer >> 
How does the International Monetary Fund function?
Learn how expenditures and distributions affect the fixed charge coverage ratio, and how this ratio is used to evaluate a ... Read Answer >> 
What are the best ways to pay off my mortgage quickly?
Learn how mortgage payments may be reduced and how to save thousands on mortgage loans by lowering the interest and principle ... Read Answer >> 
What is the difference between debt to income and debt to assets?
Understand the differences between the debttoincome ratio and the debt to assets ratio as they apply to personal and corporate ... Read Answer >> 
How can I use the debttocapital ratio to evaluate a stock?
Understand the significance of the debt to capital ratio of financial leverage, and learn how investors and analysts make ... Read Answer >>