Finance
A buyer's debt-to-income (DTI) ratio is calculated by:
ADividing gross income by total debt payments
BDividing total monthly debt payments by gross monthly income✓ Correct
CDividing net income by housing payment
DDividing total assets by total liabilities
Explanation
DTI = Total monthly debt payments / Gross monthly income. Lenders use this ratio to evaluate a borrower's ability to manage monthly payments.
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