Finance
What is the debt-to-income (DTI) ratio used for in Hawaii mortgage lending?
AA. To calculate property taxes
BB. To measure a borrower's ability to manage monthly payments relative to gross income✓ Correct
CC. To determine the LTV on a refinance
DD. To set the mortgage interest rate
Explanation
DTI compares monthly debt obligations to gross monthly income. Lenders use it to assess whether a borrower can afford the proposed mortgage payment.
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