Finance
An Alaska borrower's debt-to-income ratio is calculated by dividing:
ATotal assets by total debts
BTotal monthly debt obligations by gross monthly income✓ Correct
CNet monthly income by monthly housing costs
DAnnual income by the total mortgage balance
Explanation
The debt-to-income (DTI) ratio equals total monthly debt payments (including PITI and all installment and revolving debt) divided by gross monthly income. Lenders use DTI to assess a borrower's ability to repay. Conventional loans typically require a back-end DTI of 43% or less.
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