Mortgages & Loans

In the mortgage process , what is the Payment to Income ratio ?

Answer:

The Payment to Income ratio is the ratio of the borrower's total housing payment including the principal, interest, taxes, insurance, additional fees, special assessments, and subordinate financing divided by the borrower's income. It is used to measure the borrower's capacity to manage the housing expense. This is also known as the "Housing Debt to Income ratio."
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