Which of the following monthly payments would NOT be included in the back-end DTI calculation?
Correct Answer
C) Utilities and phone bills
Back-end DTI includes recurring monthly debt obligations that appear on credit reports or are legally required, such as credit cards, loans, and support payments. Utilities and phone bills are living expenses but not debt obligations, so they are excluded from DTI calculations per standard underwriting guidelines.
Why This Is the Correct Answer
Back-end DTI includes recurring monthly debt obligations that appear on credit reports or are legally required, such as credit cards, loans, and support payments. Utilities and phone bills are living expenses but not debt obligations, so they are excluded from DTI calculations per standard underwriting guidelines.
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