Finance
The debt-to-income (DTI) ratio used by Rhode Island lenders to qualify mortgage borrowers compares:
ATotal assets to total liabilities
BMonthly debt obligations to gross monthly income✓ Correct
CAnnual property taxes to the loan amount
DThe down payment to the purchase price
Explanation
The DTI ratio compares a borrower's total monthly debt obligations (including the proposed mortgage payment) to their gross monthly income. Conventional lenders generally look for a back-end DTI of 43% or less.
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