Finance
A Hawaii buyer's back-end debt-to-income ratio is 43%. This means:
AA. The buyer's credit score is 430
BB. 43% of gross monthly income goes to all monthly debt payments including the proposed mortgage✓ Correct
CC. The buyer can afford 43% more house than their current budget
DD. The lender will reduce the interest rate by 0.43%
Explanation
The back-end (total) DTI ratio measures all monthly debt obligations (mortgage, car, student loans, credit cards) as a percentage of gross monthly income. 43% is a common maximum.
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