Finance
The 'debt-to-income' (DTI) ratio used in NC mortgage qualification includes:
AOnly the proposed mortgage payment
BThe proposed mortgage payment (PITI) plus all recurring monthly debt obligations✓ Correct
CAll expenses including utilities and groceries
DOnly credit card and auto loan payments
Explanation
The back-end DTI ratio includes the proposed housing payment (PITI) plus all other recurring monthly debts (car loans, student loans, credit cards, etc.).
Related North Carolina Finance Questions
- A homebuyer receives a Loan Estimate and notices the origination charges are significantly higher than what the lender verbally quoted. Under TRID, which fees are subject to a 0% tolerance (cannot increase at closing)?
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