Sentences with phrase «effective income ratio»

The FHA loan rulebook for single - family home loans has a section instructing the lender, «For all transactions, except non-credit qualifying Streamline Refinances, the underwriter must calculate the Borrowers Total Mortgage Payment to Effective Income Ratio (PTI) and the Total Fixed Payment to Effective Income ratio, or DTI...» This is required to help the lender determine whether the borrower can afford the new loan or not.

The Department of Housing and Urban Development (HUD) uses the term Total Fixed Payments to Effective Income Ratio when explaining these requirements.

Not exact matches

Next, we created an effective tax rate index for each county, which reflects the counties with the lowest ratio of income taxes to the assumed $ 50,000 annual income.

«A managed account can be good for participants, but they are particularly effective for those who are engaged and will provide the managed account manager with more information, such as risk preferences, assets outside of the plan, and desired income replacement ratio,» he says.

While it may be true that making minimum payments can help your credit score, minimum payments are not effective at reducing debt — so it won't be helpful at reducing your debt - to - income ratio.

Your total fixed payment to effective income number also plays a role, with the maximum allowed ratio to qualify set at 43 %.

(A cash - on - cash rate of return is a measure of investment return determined by a ratio of the property's cash flow and its effective gross income after expenses, taxes, and debt service.)