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Mortgage Glossary

Housing Expense Ratio

Mike Starr·Reviewed August 2026

The housing expense ratio (also called the front-end ratio) is the percentage of a borrower's gross monthly income that goes toward housing costs, including principal, interest, property taxes, and insurance (PITI). Most lenders prefer this ratio to be 28% or less. Lenders use this alongside the debt-to-income ratio to determine loan eligibility.

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