Mortgage terms and definitions for
home buyers, home sellers, and real estate consumers. Use
the links below to find the word you're looking for.
The ratio of the borrower's fixed monthly expenses to
his gross monthly income. Ratios are expressed as two
numbers like 28/36 where 28 would be the Front-End
Ratio and 36 would be the Back-End Ratio.
Front-End Ratio is the percentage of a borrower's
gross monthly income (before income taxes) that would
cover the cost of PITI (Mortgage Principal
Payment + Mortgage Interest Payment
+ Property Taxes + Homeowners Insurance).
In the case of a 28% Front-End Ratio a borrower could
qualify if the proposed monthly PITI payments were
28% or less than the borrower's gross monthly income.
Back-End Ratio is the percentage of a borrower's gross
monthly income that would cover the cost of PITI plus
any other monthly debt payments like car or personal
loans and credit card debt.
that qualifying ratios are only a rough guideline
in determining a potential borrower's credit-worthiness.
Many factors such as excellent or poor credit history,
amount of down payment, and size of loan will influence
the decision to approve or disapprove a particular
A deed that transfers, without warranty, whatever interest
or title a grantor may have at the time the conveyance