Finance
What is the debt-to-income (DTI) ratio?
AMonthly savings divided by monthly income
BMonthly debt payments divided by gross monthly income✓ Correct
CAnnual income divided by total debt
DNet income divided by housing expense
Explanation
DTI = Monthly Debt Payments ÷ Gross Monthly Income. Lenders use this ratio to assess a borrower's ability to manage monthly payments and repay debts.
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