Finance
Debt-to-income (DTI) ratio in Arizona mortgage underwriting compares:
AThe loan amount to the property value
BThe borrower's total monthly debt payments to their gross monthly income✓ Correct
CThe borrower's assets to their liabilities
DThe mortgage payment to the property's rental income
Explanation
DTI ratio = Total monthly debt payments ÷ Gross monthly income. Lenders use DTI to assess a borrower's ability to manage monthly payments. Most conventional loans require a maximum 43-45% DTI.
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