Finance
The debt-to-income (DTI) ratio used by lenders in Arizona measures:
AThe ratio of the borrower's assets to their total debt
BThe percentage of monthly gross income that goes toward monthly debt payments✓ Correct
CThe ratio of the loan amount to the property's appraised value
DThe borrower's credit card balances divided by their credit limits
Explanation
DTI is the percentage of a borrower's gross monthly income used to pay monthly debt obligations (including the proposed mortgage payment). Most conventional lenders prefer a DTI at or below 43-45%.
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