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What are front and back ratios

Posted on: 29th Oct, 2013 02:50 am
My friend has just taken a mortgage. I have heard about these different types of ratios when qualifying for a loan. He gave me a fair idea but I want to know more about it. I am planning to take a mortgage loan soon. Your replies will be highly appreciated.
Hi,

Through front end ratios a lender calculates, how much of your monthly income will be used for your mortgage payment. And,

Through back end ratio a lender calculates, how much of your monthly income is used for payment of your debt including credit card debts, car loan alimony etc.

Take care
Posted on: 29th Oct, 2013 03:06 am
Hi Ricardo!

Welcome to the forums!

You can check out the given page to know more about it: http://www.mortgagefit.com/loatalk/front-backend-ratios.html

Sussane
Posted on: 30th Oct, 2013 10:42 pm
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