Menu

Home › Forums › Closed Forums › Properties or Areas › How much house should I buy? › Front end ratio is the

December 21, 2007 at 2:19 PM #122453
(former)FormerSanDiegan
Participant

Front end ratio is the percentage of your income needed to service PITI (principal, interest, taxes, and insurance).
Back end ratio is the percentage of your income needed to service all of your debt (including PITI).

Old fashioned Debt ratios used to be 28/36. Thast is 28% of income for PITI, 36% for total debt.