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Ronald Okubo, REALTOR ®, EMERITUS,  RB-11791
ABR, CRB, CRS, GRI SRES, ePRO
Ron Corp                             
RB15512
Innovative Real Estate Solutions
2065 S. King Street, Suite 210
Honolulu, HI 96826
Phone: 808-988-1400
Email: ron@roncorp.com

Thank you for visiting today. If this is your first visit, take your time and look around. I have plenty of information and resources available to you. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.

Front Ratio vs. Back Ratio

Front Ratio vs Back Ratio

Lenders determine your ability to afford the mortgage payment based on your monthly housing expenses compared to your gross monthly income is called the front ratio. Your total monthly expenses compared to your gross monthly income is called the back ratio. Mortgage underwriting standards can vary by loan product. 

So the principal, interest,taxes and insurance, known as PITI, on your mortgage loan shouldn't exceed 28 percent of your monthly pretax income, and all monthly loan obligations including the mortgage shouldn't exceed 36 percent of your montly pretax income. A lender can often be more flexible on the back ratio than it can be on the front ratio. Be sure to check because often there can be more flexibility.

 

Helping You Make Smart Moves

ABR - Accredited Buyer RepresentativeCRB - Certified Real Estate Brokerage ManagerCRS - Certified Residential Specialiste-PROEqual Housing OpportunityGRI - Graduate, REALTOR® InstituteNARPM - National Association of Residential Property ManagersREALTOR® certificationSRES - Seniors Real Estate Specialist

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