Monthly housing expense divided by gross income. Also called Payment-to-Income Ratio and Front-End Ratio.
One of several financial calculations performed by your lender when applying for a conventional loan to determine if you can afford a particular monthly payment. The housing ratio(also known as the income ratio) is your total monthly payment including taxes and insurance divided by your total monthly income. Typically acceptable housing ratios for Conventional Loans are 28 - 33% and FHA Loans are 29 - 31%.
This ratio is used to determine how much of your income will be used for your house payment, taxes & insurance by dividing your housing expense into your gross monthly income.
This ratio is a measure of the percentage of the borrower's stable monthly gross income which is used to pay: Principal & Interest on the mortgage loan, Insurance, and Taxes. (and, when applicable, Mortgage Insurance Premiums, Homeowners Association dues, and payments on any secondary financing arrangements). The Housing Ratio is calculated as follows: Housing Payment รท Stable Gross Monthly Income For most conventional loan programs, this ratio must not exceed 28%.
(Also called the housing-to-income ratio) This ratio reflects the percent of the borrower's income to be used for the monthly housing payment.
A calculation to determine which type of loan a borrower qualifies for. The calculation divides the monthly housing expense (principal, interest, tax and insurance) by the gross monthly income (also called a front-end ratio or a top ratio).
Lenders use housing ratio to approve loan applicants. Housing ratio equals combined monthly mortgage payment divided by gross monthly income. For example, a combined monthly mortgage payment of $1,500 divided by gross monthly income of $4,500 equals a housing ratio of 33%.
The ratio of the monthly housing payment in total (PITI - Principal, Interest, Taxes, and Insurance) divided by the gross monthly income. This ratio is sometimes referred to as the top ratio or front end ratio.
A borrower's total monthly housing payment (PITI - Principal, Interest, Taxes, and Insurance) divided by gross monthly income and shown as a percentage. For example, if PITI = $1,500 and gross monthly income = $6,000, then the Housing ratio would equal $1,500 divided by $6,000 or 25%. Sometimes referred to as the front ratio.
The ratio, expressed as a percentage, which results when a borrower's housing expenses are divided by his/her gross monthly income. See debt-to-income ratio.
A ratio used in underwriting that determines what percentage of gross monthly income is going to the proposed housing expense for the new mortgage.
A calculation lenders use to determine if a borrower qualifies for a loan. The lender divides the total monthly housing expense (principal, interest, real estate taxes, and homeowner's insurance) by the borrower's gross monthly income.
The ratio, expressed as a percentage, which results when a borrower's total housing expenses (PITI- Principal, Interest, Taxes, Insurance) are divided by his/her gross monthly income.
The ratio of the monthly housing payment to total gross monthly income. Also called Payment-to-Income Ratio or Front-End Ratio.
Also called the front-end ratio or payment-to-income ratio. The ratio of the monthly housing payment to total monthly income.
A standard calculation performed by mortgage lenders to determine if a borrower qualifies for a specific loan type and amount. It is calculated by dividing the monthly housing expense (Principal, Interest, Taxes and Insurance) by the borrower's monthly gross income. Also referred to as a front-end ratio or a top ratio.