Calculations that are used in determining whether
a borrower can qualify for a mortgage.
There are two ratios.
The "top" or
"front" ratio is a calculation of the borrower's monthly housing costs
(principle, taxes, insurance, mortgage insurance, homeowner's association
fees) as a percentage of monthly income.
The "back" or "bottom" ratio includes
housing costs as will as all other monthly debt.
Real Estate Glossary:
401K - E |
F - M |
N - V