Finance
A borrower's 'front-end ratio' (housing ratio) compares:
ATotal monthly debt payments to gross monthly income
BMonthly housing expenses (PITI) to gross monthly income✓ Correct
CLoan amount to property value
DAnnual income to total purchase price
Explanation
The front-end ratio (housing ratio) divides the monthly housing payment (principal, interest, taxes, insurance — PITI) by the borrower's gross monthly income. Most conventional loans require a front-end ratio below 28%.
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