Finance
The front-end ratio (housing expense ratio) used by lenders compares:
ATotal monthly debt to gross monthly income
BMonthly housing expense (PITI) to gross monthly income✓ Correct
CNet income to property taxes
DDown payment to loan amount
Explanation
The front-end ratio = Monthly PITI (Principal, Interest, Taxes, Insurance) ÷ Gross Monthly Income. Most conventional lenders prefer this ratio at or below 28%.
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