Finance
A borrower's gross monthly income is $6,000. Their proposed mortgage payment is $1,500 and other monthly debts total $600. What is their back-end DTI ratio?
A25%
B30%
C35%✓ Correct
D40%
Explanation
Back-end DTI = (Total monthly debts including mortgage) ÷ Gross monthly income = ($1,500 + $600) ÷ $6,000 = $2,100 ÷ $6,000 = 35%.
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