Finance
A Connecticut borrower's front-end (housing) debt-to-income ratio is calculated by dividing:
ATotal monthly debt payments by gross monthly income
BMonthly housing expense (PITI) by gross monthly income✓ Correct
CNet monthly income by monthly mortgage payment
DAnnual salary by the purchase price
Explanation
The front-end (housing) DTI ratio divides PITI (principal, interest, taxes, and insurance) by the borrower's gross monthly income. Most conventional loans require this ratio to be 28% or below.
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