Finance
A Montana borrower's front-end (housing) debt-to-income ratio is calculated by dividing:
ATotal monthly debt payments by gross monthly income
BMonthly housing costs (PITI) by gross monthly income✓ Correct
CNet monthly income by monthly mortgage payment
DTotal loan amount by annual gross income
Explanation
The front-end (housing) DTI ratio = Monthly Housing Costs (Principal + Interest + Taxes + Insurance / PITI) ÷ Gross Monthly Income. Conventional loans typically require a front-end ratio of 28% or less.
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