Finance
A Mississippi borrower's 'front-end ratio' (housing ratio) is calculated as:
ATotal monthly debt payments ÷ gross monthly income
BMonthly housing expenses (PITI) ÷ gross monthly income✓ Correct
CLoan amount ÷ appraised value
DDown payment ÷ purchase price
Explanation
The front-end (housing) ratio compares monthly housing costs (principal, interest, taxes, insurance = PITI) to gross monthly income. Lenders typically want this ratio at 28% or below.
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