PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Debt-to-income ratio, or DTI, compares required monthly debt payments with gross monthly income.
Financing
Mortgage finance
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Debt-to-income ratio mean?
Debt-to-income ratio, or DTI, compares required monthly debt payments with gross monthly income. A housing ratio uses the housing obligation, while a total DTI includes housing plus other counted recurring debt.
How do you separate the nearest exam answer?
DTI measures payment burden relative to income. LTV measures loan size relative to property value.
What changes or stays the same in Georgia?
This national underwriting concept is unchanged in Georgia. Use gross income and only the debts the question directs, all on the same monthly basis.
Gross monthly income is $8,000, housing expense is $2,000, and other monthly debt is $800. Total DTI is $2,800 ÷ $8,000 = 35 percent.
Using net take-home pay or excluding the proposed housing payment changes the ratio.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
An applicant earns $7,500 a month gross and takes home $5,100. The proposed housing payment is $1,800, a car loan is $450, a student loan is $300, and utilities average $300. The lender counts housing and loan payments only. What is the total debt-to-income ratio?
- A
24 percent
- B
34 percent
- C
50 percent
- D
38 percent
Total DTI divides all counted monthly debts by gross monthly income: ($1,800 + $450 + $300) / $7,500 = 34 percent. Using take-home pay gives 50 percent, and counting the utilities the lender excludes gives 38 percent. The housing ratio alone would be 24 percent.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Financing complete lesson
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