Front-end ratio,FER,Front-End Debt-to-Income Ratio,FEDTI,DTI,FEDTIR
Formula or Equation
| FER | front-end ratio,FER,Front-End Debt-to-Income Ratio,FEDTI,DTI,FEDTIR |
| MPI | mortgage principal and interest,MPI,MPAI |
| MIP | mortgage insurance premium,MIP |
| HIP | hazard insurance premium,HIP |
| PT | property taxes,PT |
| HAD | homeowners' association dues,HAD |
| OF | other fee,OF |
| GMI | gross monthly income,GMI |
Formula or Equation Note
Front-end ratio is the percentage of income that goes toward housing costs, which for renters is the rent amount and for homeowners is PITI (mortgage principal and interest, mortgage insurance premium [when applicable], hazard insurance premium, property taxes, and homeowners' association dues [when applicable]). Front-end ration should not be more than 28% for a new loan.
