Finance
An Iowa borrower's debt-to-income (DTI) ratio is calculated by dividing:
ATotal property value by annual income
BTotal monthly debt obligations (including the proposed housing payment) by gross monthly income✓ Correct
CNet income by total outstanding debt
DAnnual mortgage interest by total assets
Explanation
DTI = Total Monthly Debt Payments / Gross Monthly Income. Lenders use this ratio to assess a borrower's ability to repay.
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