Finance
In Florida, the 'debt-to-income ratio' (DTI) used by mortgage lenders measures:
AThe ratio of the loan amount to the property value
BMonthly debt obligations as a percentage of gross monthly income✓ Correct
CThe borrower's total assets divided by total liabilities
DThe interest rate compared to the borrower's income
Explanation
DTI measures the borrower's monthly debt payments (including the proposed mortgage) as a percentage of gross monthly income. Most conventional lenders prefer a back-end DTI of 43% or less, though guidelines vary.
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