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What is front-end ratio and how do you figure it out?

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User Nocklas
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Answer:

The front-end ratio is calculated by dividing an individual's anticipated monthly mortgage payment by his/her monthly gross income. The mortgage payment generally consists of principal, interest, taxes, and mortgage insurance (PITI). Lenders use the front-end ratio in conjunction with the back-end ratio to determine how much to lend.

Explanation:

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User Prufrofro
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