Finance
The debt-to-income ratio (DTI) used by New Hampshire lenders measures:
AThe ratio of the property's value to outstanding debt
BThe borrower's monthly debt payments as a percentage of gross monthly income✓ Correct
CThe lender's ratio of bad loans to performing loans
DThe ratio of the down payment to total purchase price
Explanation
DTI compares a borrower's total monthly debt obligations (including the proposed mortgage payment) to gross monthly income. Most conventional lenders prefer a DTI at or below 43-45%.
Related New Hampshire Finance Questions
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- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating against loan applicants based on:
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- A NH lender is required to provide a Loan Estimate to a mortgage applicant within:
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