Finance
A Massachusetts borrower's front-end debt-to-income (DTI) ratio compares:
AAll monthly debt to gross income
BHousing costs only (PITI) to gross monthly income✓ Correct
CNet income to monthly debt payments
DAnnual income to total loan amount
Explanation
The front-end (housing) DTI ratio compares only housing costs (PITI—Principal, Interest, Taxes, Insurance) to gross monthly income. Conventional loan guidelines typically cap this at 28%. The back-end ratio includes all debts.
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