A standard calculation performed by mortgage lenders to determine if a borrower qualifies for a specific loan type. It is calculated by dividing the monthly housing expense (Principal, Interest, Taxes and Insurance plus all other monthly debt obligation) by the borrower's monthly gross income. Also referred to as a back end ratio or a bottom ratio.
The amount paid by the borrower for principal, interest, taxes and insurance and any recurring monthly debt, divided by repayment income. (last updated 03/19/2004)
Monthly debt and housing payments, divided by gross monthly income, to prove that the seller can transfer free and clear ownership.
Monthly debt and housing payments divided by gross monthly income. Also known as Obligations-to-Income Ratio or Back-End Ratio.
Monthly debt and housing payments divided by gross monthly income. Also known as Back-End Ratio. See also Qualifying Ratio.
A ratio that indicates what portion of a person's monthly income goes toward paying debts. It is calculated as an individual's total monthly debt divided by gross monthly income and expressed as a percentage. Total monthly debt includes such expenses as home loan payments (made up of PITI), credit card payments, child support and other loan payments.
A standard calculation performed by mortgage lenders to determine if a borrower qualifies for a specific loan type. Total debt ratio is calculated by dividing the monthly housing expense (PITI plus all other monthly debt obligation) by the borrowers monthly gross income. This is also referred to as a "back-end ratio" or "bottom ratio."
Comparison of the total costs of living for a person (including debt, food, utilities) over a given period with the gross income of that person.
Monthly debt and housing payments divided by gross monthly income. Also referred to as Back-End Ratio.
Percentage of a (potential) borrower's fixed monthly debt verses gross income. Lender's use this ratio to determine how much can be loaned to a borrower.
Total monthly debt plus housing payments divided by your gross monthly income.