| | 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. | |
