Finance
In South Carolina, what is the 'debt-to-income ratio' (DTI) used for in mortgage lending?
ATo determine the property's market value
BTo assess a borrower's ability to manage monthly debt payments relative to their income✓ Correct
CTo calculate the loan-to-value ratio
DTo set the mortgage interest rate
Explanation
DTI compares total monthly debt payments to gross monthly income. Lenders use DTI to assess whether a borrower can afford the mortgage.
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