Finance
A Michigan lender calculates a borrower's debt-to-income (DTI) ratio as:
AMonthly income ÷ Monthly housing payment
BTotal monthly debt payments ÷ Gross monthly income✓ Correct
CAnnual income ÷ Total loan amount
DMonthly mortgage ÷ Property value
Explanation
DTI ratio = Total monthly debt payments (housing + other debts) ÷ Gross monthly income. Lenders use this ratio to assess a borrower's ability to manage and repay the proposed debt.
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