Real Estate Directory and Information Provider

Qualifying Ratios

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.