mortgage & home loan refinance | vase at home

Back End Ratio (debt-to-income ratio)

Back End Ratio (debt-to-income ratio)

A measure used by lenders  in the loan qualifying process to determine if a borrower can afford the  prospective mortgage payment. The 'back-end' ratio divides a person's gross income by the sum of the mortgage payment, property taxes, and homeowner's insurance, as well as the monthly costs for debts like car payments, credit card debts,  and child support or alimony obligations. The ratio is expressed as a percentage, the percentage of a person's gross income that the debts utilize.


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