Finance
The debt-to-income (DTI) ratio used by lenders measures:
AThe ratio of property value to outstanding debt
BMonthly debt obligations as a percentage of gross monthly income✓ Correct
CThe ratio of down payment to purchase price
DAnnual income relative to the property's appraised value
Explanation
The debt-to-income (DTI) ratio compares a borrower's total monthly debt obligations (including the proposed housing payment) to their gross monthly income. Lenders use DTI to assess repayment ability.
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