Finance
The debt-to-income (DTI) ratio used by lenders compares:
AProperty value to loan amount
BMonthly debt payments to gross monthly income✓ Correct
CDown payment to purchase price
DInterest rate to inflation rate
Explanation
The DTI ratio is calculated by dividing total monthly debt payments by gross monthly income; lenders use it to assess a borrower's ability to repay the loan.
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