Explore 3 Stock Ideas & Industry Insights Download Free Report

Finance Dictionary

Front-End Debt-to-Income Ratio (DTI)

Definition

Generally, Front-End Debt-to-Income Ratio is used by lenders, and it is alternatively called mortgage-to-income ratio. It is calculated by dividing the monthly mortgage instalment by the monthly income. This ratio assesses the borrower debt servicing commitment relative to the monthly income.