Financial
Front-End Ratio
The percentage of your gross monthly income that goes toward housing costs alone — specifically your mortgage payment, property taxes, homeowners insurance, and any HOA fees (also known as PITI). Most lenders prefer a front-end ratio of 28% or less. For example, if your gross monthly income is $7,000, your total housing costs ideally should not exceed $1,960.
Why It Matters
Front-End Ratio directly affects how much you pay for your home and how you build wealth through homeownership. Understanding the financial mechanics of your mortgage helps you make choices that save money over the long term.
Use mortgage calculators to see how front-end ratio impacts your specific numbers. Even small differences in financial terms can add up to tens of thousands of dollars over the life of a 30-year mortgage.