Finance
The debt-to-income ratio (DTI) used by Massachusetts mortgage lenders measures:
AThe loan amount divided by the property value
BMonthly debt obligations as a percentage of gross monthly income✓ Correct
CAnnual property taxes divided by annual income
DNet income divided by total debt
Explanation
Debt-to-income ratio (DTI) compares a borrower's total monthly debt payments (including the proposed mortgage) to their gross monthly income. Lenders use it to assess ability to repay.
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