Finance
The 'debt-to-income ratio' (DTI) used in mortgage underwriting compares:
AThe loan amount to the property's appraised value
BThe borrower's monthly debt obligations to their gross monthly income✓ Correct
CThe property's annual income to its operating expenses
DThe down payment to the purchase price
Explanation
DTI (debt-to-income ratio) is a key underwriting metric that compares the borrower's total monthly debt obligations (including the proposed mortgage payment) to their gross monthly income. Most conventional loans require a DTI at or below 43–45%.
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