Finance
In New York, the 'debt-to-income ratio' (DTI) used by lenders measures:
AThe ratio of property value to purchase price
BTotal monthly debt obligations divided by gross monthly income✓ Correct
CNet worth divided by property value
DMonthly rent divided by monthly income
Explanation
DTI = Total Monthly Debt Obligations (including the proposed housing payment) ÷ Gross Monthly Income. Lenders use DTI to assess a borrower's ability to manage and repay debts.
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