Finance
A buyer's debt-to-income (DTI) ratio of 43% means:
AThe buyer has $43 in debt for every $100 in assets
B43% of the buyer's gross monthly income goes toward all monthly debt obligations✓ Correct
CThe buyer has saved 43% of the purchase price as a down payment
DThe buyer's credit card utilization is 43%
Explanation
DTI ratio measures monthly debt payments as a percentage of gross monthly income. A 43% DTI means 43 cents of every dollar earned goes toward debt payments, which is the maximum for many conventional loan programs.
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