Finance
The debt-to-income (DTI) ratio is calculated by dividing:
AMonthly income by monthly debt payments
BMonthly debt payments by gross monthly income✓ Correct
CTotal debt by total income for the year
DMonthly mortgage payment by property value
Explanation
DTI = Monthly Debt Payments ÷ Gross Monthly Income. Lenders use DTI to assess a borrower's ability to manage monthly payments relative to their income.
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