What Is the Back End Ratio
The Back-End Ratio, Also Known as the Debt-to-Income ratioHow Do You Calculate Back-End Debt Ratio? Add up All Monthly Debt Payments. Divide the Total Monthly...
The back-end ratio, also known as the debt-to-income ratio
How do you calculate back-end debt ratio?
- Add up all monthly debt payments.
- Divide the total monthly debt payments by the monthly gross income.
- Multiply the value by 100 to get the percentage amount.
What is my front-end ratio?
Add your total expected housing expenses. This includes the principle and interest mortgage payment, taxes, insurance and any HOA dues. Divide your housing expenses by your gross monthly income. Multiply that number by 100. The total is your front-end DTI ratio.
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