Finance (alternative)
A Maryland borrower's debt-to-income (DTI) ratio is calculated as:
AMonthly income divided by monthly debts
BMonthly housing cost divided by annual income
CTotal monthly debt payments divided by gross monthly income✓ Correct
DNet monthly income divided by total debt
Explanation
DTI ratio = Total monthly debt payments (including proposed housing payment) ÷ Gross monthly income. Lenders use DTI to evaluate a borrower's ability to manage monthly payments.
Related Maryland Finance (alternative) Questions
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