mortgage & home loan refinance | vase at home

Front-end Ratio (debt-to-income ratio)

Front-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 'front-end' ratio divides a person's monthly gross income by the sum of the mortgage payment's principal and interest, as well as the monthly costs for property taxes and homeowner's insurance. The ratio is expressed as a percentage, the percentage of a person's gross income that the various payments utilize.


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