Finance
A Pennsylvania borrower's 'front-end ratio' for mortgage qualification includes:
AAll monthly debt payments
BOnly housing expenses: principal, interest, taxes, and insurance (PITI)✓ Correct
CThe down payment amount only
DCredit card and student loan payments only
Explanation
The front-end ratio (housing expense ratio) is PITI divided by gross monthly income. It measures what percentage of income goes to housing. Most conventional loans target a front-end ratio of 28% or less. The back-end ratio includes ALL monthly debts (PITI + car, student loans, credit cards).
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