By Staff Reporters
***
***
Back-End Ratio or Back Ratio
DEFINITION: The sum of your monthly mortgage payment and all other monthly debts (credit cards, car payments, student loans, etc.) divided by your monthly pre-tax income.
Traditionally, lenders wouldn’t give people loans that increased this ratio past 36%, but they often do now.
CITE: https://www.r2library.com/Resource/Title/082610254
***
COMMENTS APPRECIATED
Thank You
***
Filed under: Accounting, Glossary Terms, Investing | Tagged: Back End Ratio, Back Ratio |
Leave a Reply