Finance
Which of the following is included in the calculation of a borrower's debt-to-income (DTI) ratio?
AOnly the new mortgage payment
BAll monthly debt obligations (mortgage, car, student loans, credit cards) as a percentage of gross monthly income✓ Correct
CNet income minus expenses
DOnly secured debts
Explanation
DTI ratio = total monthly debt payments ÷ gross monthly income × 100. Lenders consider both front-end DTI (housing costs only) and back-end DTI (all debts).
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