Finance
A North Dakota borrower's debt-to-income (DTI) ratio is calculated by dividing:
ANet income by total debt
BTotal monthly debt obligations by gross monthly income✓ Correct
CAnnual income by total loan amount
DMonthly mortgage payment by monthly savings
Explanation
DTI ratio = Total monthly debt obligations (including proposed housing payment) ÷ Gross monthly income. Lenders typically want DTI at or below 43-45% for conventional loans, though FHA allows higher ratios in some cases.
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