Payment to income ratio is BEST described as:

Question

Quizplus · Accepted Answer

Payment to income ratio is a measure of a borrower's ability to fulfill their loan obligations by comparing their monthly debt payments to their monthly income. This helps lenders determine whether the borrower can afford to take on additional debt. Option A is incorrect because tax deductibility of mortgage loan interest depends on many other factors. Option B is incorrect because it is not the only measure of a borrower's ability to fulfill their loan obligations. Option C is incorrect because it applies specifically to rental properties.

Payment to Income Ratio Is BEST Described As