Back-End Ratio

Back-End Ratio

The Back-End ratio calculates a borrower's total monthly debt, including housing and other debt obligations, as a percentage of gross monthly income. Frequently used by lenders to qualify borrowers for a mortgage. The Back-End ratio is also called a debt-to-income ratio. BACK END RATIO OR DEBT TO INCOME (DTI) is a calculation used to evaluate and manage a borrowers debts.