Definitions for "Back End Ratio"
Keywords:  gross, gmi, reoccurring, monthly, plus
Used to qualify a borrower for a mortgage. It is the ratio of total housing payment plus installment minimum payments and other loan/lease payments divided by gross monthly income.
Ratio of monthly housing costs (principal, insurance, taxes and interest) plus regular monthly payments to gross monthly income used by lenders to evaluate an applicant qualification for a loan. Lenders will typically allow a back ratio between 32 and 45 percent.
A calculation used by lenders to compare a borrower’s total debt to their gross monthly income.