Finance
The 'debt-to-income ratio' (DTI) used in mortgage underwriting compares:
AThe loan amount to the property value
BMonthly debt payments to monthly gross income✓ Correct
CAnnual income to annual property taxes
DThe interest rate to the inflation rate
Explanation
DTI compares total monthly debt payments (including the proposed mortgage) to the borrower's gross monthly income. Lenders use DTI to assess the borrower's ability to repay the loan.
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