Finance
The debt-to-income (DTI) ratio used by lenders measures:
ATotal assets divided by total liabilities
BMonthly debt obligations divided by gross monthly income✓ Correct
CNet operating income divided by total mortgage payment
DCredit card balances divided by credit limits
Explanation
DTI = Total Monthly Debt Obligations ÷ Gross Monthly Income. Conventional lenders generally want DTI at or below 43-45%. FHA guidelines may allow higher DTIs with compensating factors. A lower DTI indicates more borrowing capacity.
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