DEFINE: “Back-End Ratio” or “Back Ratio”

By Staff Reporters

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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

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