Finance
The debt-to-income (DTI) ratio used by lenders compares:
ATotal assets to total liabilities
BMonthly gross income to total monthly debt payments✓ Correct
CAnnual income to the purchase price
DDown payment amount to total closing costs
Explanation
The DTI ratio divides total monthly debt payments (including the proposed mortgage payment) by gross monthly income. Lenders use DTI to assess a borrower's ability to repay the loan.
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