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How Underwriters Calculate Borrowers Debt To Income Ratios
How Mortgage Underwriters Calculate Borrowers Debt To Income Ratios?
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Underwriters look at borrowers’ debt-to-income (DTI) ratios to determine if they can repay the loan they are applying for. There is the front-end and back-end debt-to-income ratio. The front-end debt-to-income ratio is the cumulative housing payment (PITI) divided by the borrower’s monthly gross income. The back-end debt-to-income ratio is the cumulative housing payment which is the principal, interest, tax, and insurance (PITI) divided by the borrower’s gross income.
To make it convenient for our viewers, I posted the link to our online mortgage calculator with debt-to-income feature:
https://www.gustancho.com/best-mortgage-calculator/
gustancho.com
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