The front-end debt-to-income ratio (DTI) is a variation of the debt-to-income ratio (DTI) that calculates how much of a person’s gross income is going toward housing costs. If a homeowner has a mortgage, the front-end DTI ratio is usually calculated as housing expenses (such as mortgage payments, mortgage insurance, etc.) divided by gross income. In contrast, a back-end DTI calculates the percentage of gross income going toward other types of debt like credit cards or car loans.
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