8
QuizMultiple Choice

Home Ownership — Quiz

Question 8 • Financial Math

Why is the debt-to-income ratio (DTI) significant when applying for a mortgage?

Answer
A
It sets the maximum amount a lender can charge for a mortgage.
B
It indicates whether a borrower can manage mortgage payments along with other debts.
C
It determines the amount of interest a borrower will pay over the loan term.
D
It shows the borrower's creditworthiness based on payment history.
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Why is the debt-to-income ratio (DTI)…