Finance
A Colorado buyer's 'debt-to-income ratio' (DTI) is calculated by dividing:
AA. Total assets by total liabilities
BB. Monthly debt obligations (including the proposed housing payment) by gross monthly income✓ Correct
CC. Net worth by annual income
DD. Total savings by total debt
Explanation
DTI ratio = Monthly debt obligations ÷ Gross monthly income. Lenders calculate both 'front-end' DTI (housing expense only ÷ gross income) and 'back-end' DTI (all monthly debts including housing ÷ gross income).
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