Definitions for "Back ratio"
Keywords:  qualification, gross, plus, ratio, car
see Debt to Income Ratio
Ratio of monthly housing costs (principal, insurance, taxes, and interest) plus regular monthly payments to gross monthly income used by lenders to evaluate an applicants qualification for a loan. Lenders will typically allow a back ratio between 32 and 45 percent.
The total debt expense (or Back Ratio) compares your total monthly obligations including your total mortgage payment to your monthly income. Eg: Credit card debt, car payment, etc. plus PITI. Most banks use a ratio of 36 to 40.