Finance
The debt-to-income (DTI) ratio used in Missouri mortgage underwriting compares:
AThe loan amount to the appraised value
BMonthly debt payments to gross monthly income✓ Correct
CAnnual income to property taxes
DCredit score to interest rate
Explanation
DTI ratio = Total monthly debt payments ÷ Gross monthly income. Lenders use DTI to assess whether a borrower can afford loan payments. Common maximum DTI is 43% for qualified mortgages.
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