Finance
A Vermont borrower's debt-to-income (DTI) ratio is used by lenders to:
ADetermine the property's market value
BAssess the borrower's ability to repay by comparing monthly debt obligations to gross monthly income✓ Correct
CCalculate the exact loan interest rate
DSet the loan origination fee
Explanation
DTI ratio compares the borrower's total monthly debt obligations to gross monthly income. Lenders use DTI to evaluate repayment capacity; most conventional loans require a DTI at or below 43–45%.
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