Finance
The debt-to-income (DTI) ratio is used by Oklahoma mortgage lenders to:
ADetermine property tax rates
BAssess the borrower's ability to repay by comparing total monthly debt payments to gross monthly income✓ Correct
CCalculate the loan-to-value ratio
DSet the interest rate on the loan
Explanation
DTI = Total Monthly Debt Payments ÷ Gross Monthly Income. Conventional lenders typically require a back-end DTI of 43% or less (all debts including housing). Lower DTI ratios indicate a stronger ability to manage mortgage payments.
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