Finance
What is 'debt-to-income ratio' (DTI) and why do Kansas mortgage lenders use it?
AThe ratio of property debt to its income; used to set rental prices
BThe ratio of a borrower's total monthly debt payments to gross monthly income; used to assess repayment ability✓ Correct
CThe ratio of interest paid to principal paid; used to calculate APR
DThe ratio of down payment to loan amount; used to determine PMI requirements
Explanation
DTI measures a borrower's monthly debt obligations as a percentage of gross monthly income. Kansas lenders use it to evaluate whether a borrower can afford the loan.
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