Finance
A buyer's front-end (housing) debt-to-income ratio is calculated by dividing:
ATotal monthly debt by gross monthly income
BMonthly housing payment (PITI) by gross monthly income✓ Correct
CNet monthly income by total monthly debt
DAnnual property taxes by gross annual income
Explanation
The front-end DTI ratio = Monthly Housing Costs (Principal, Interest, Taxes, Insurance — PITI) ÷ Gross Monthly Income. Lenders use this to assess affordability.
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