Finance
The debt-to-income (DTI) ratio used by Indiana mortgage lenders compares:
AThe loan amount to the property value
BThe borrower's monthly debt payments (including the proposed mortgage) to gross monthly income✓ Correct
CThe interest rate to the prime rate
DThe loan balance to the borrower's net worth
Explanation
DTI ratio = total monthly debt payments ÷ gross monthly income. Lenders use DTI to assess a borrower's ability to repay. Conventional loans generally require a maximum back-end DTI of 43–45%.
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