Finance
A borrower has a gross monthly income of $5,000 and monthly debt payments of $1,800. What is their back-end debt-to-income ratio?
A28%
B32%
C36%✓ Correct
D40%
Explanation
Back-end DTI = $1,800 ÷ $5,000 × 100 = 36%. Most conventional lenders prefer a back-end DTI of 36–43% or less, though exceptions exist with compensating factors.
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