Which item is included in back-end DTI but not front-end DTI?

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Multiple Choice

Which item is included in back-end DTI but not front-end DTI?

Back-end DTI includes all monthly debt payments, not just housing costs. Front-end DTI looks only at housing-related payments (the mortgage payment plus property taxes, homeowners insurance, and any HOA dues) as a share of income. An auto loan payment is a non-housing debt, so it is counted in the back-end DTI but not in the front-end DTI. Mortgage payments, property taxes, and homeowners insurance are all tied to housing and appear in front-end DTI (as part of PITI), and they can also appear in back-end as part of total obligations, but the auto loan stands out as the item included on the back end but not on the front end.

Back-end DTI includes all monthly debt payments, not just housing costs. Front-end DTI looks only at housing-related payments (the mortgage payment plus property taxes, homeowners insurance, and any HOA dues) as a share of income. An auto loan payment is a non-housing debt, so it is counted in the back-end DTI but not in the front-end DTI. Mortgage payments, property taxes, and homeowners insurance are all tied to housing and appear in front-end DTI (as part of PITI), and they can also appear in back-end as part of total obligations, but the auto loan stands out as the item included on the back end but not on the front end.

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