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What is front-end ratio and how do you figure it out?

User Dontangg
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1 Answer

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12 votes

Answer:

The front-end ratio is calculated by dividing an individual's anticipated monthly mortgage payment by his/her monthly gross income. The mortgage payment generally consists of principal, interest, taxes, and mortgage insurance (PITI). Lenders use the front-end ratio in conjunction with the back-end ratio to determine how much to lend.

Explanation:

User CTsiddharth
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