Finance
The debt-to-income (DTI) ratio used by lenders is calculated as:
ATotal assets divided by total liabilities
BMonthly debt payments divided by gross monthly income✓ Correct
CNet income divided by property value
DAnnual income divided by loan amount
Explanation
DTI is calculated by dividing the borrower's total monthly debt payments by their gross monthly income, expressed as a percentage. Lenders use this to assess repayment ability.
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