Front-End Debt-To-Income Ratio
The front-end debt-to-income (DTI) ratio is a variation of the DTI that calculates how much of a person's gross income is going toward housing costs. If a homeowner has a mortgage, the front-end DTI is typically calculated as housing expenses (such as mortgage payments, mortgage insurance, etc.) divided by gross income. Back-end DTI, sometimes called the back-end ratio, calculates the percentage of gross income going toward additional debt types such as credit cards and car loans. You may also hear these ratios referred to as "Housing 1" and "Housing 2," or "Basic" and "Broad," respectively.