Finance
A Wisconsin borrower's debt-to-income (DTI) ratio is calculated by dividing total monthly debt payments by:
ANet monthly income after taxes
BGross monthly income before taxes✓ Correct
CAnnual income divided by 12
DTake-home pay plus tax refunds
Explanation
The DTI ratio used by Wisconsin lenders and underwriters is calculated by dividing total monthly debt obligations (including the proposed mortgage) by the borrower's gross monthly income (before taxes).
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