Finance
A Montana borrower's 'debt-to-income ratio' (DTI) for loan qualification purposes is calculated as:
ATotal debt divided by total assets
BTotal monthly debt payments divided by gross monthly income, expressed as a percentage✓ Correct
CTotal annual debt divided by net annual income
DMonthly housing payment divided by monthly take-home pay
Explanation
DTI ratio = Total Monthly Debt Payments / Gross Monthly Income x 100%. Lenders use DTI to evaluate a borrower's ability to manage monthly debt payments.
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