What are front and back ratios

Guest

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.

jerry · Posted: Wed Nov 23, 2005 2:31 am Post subject: RE:

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.

Thanks,
Jerry

Samantha · Posted: Wed Nov 23, 2005 2:44 am Post subject: RE:

Hi Ricardo,

Welcome to MortgageFit Forums.

Jerry has indeed provided you with some very usefull information.

For more details on Front End Ratio and Back End Ratio refer the respective section.

God Bless You,

Thanks,
Samantha

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