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RM Reports / RM Warehouse

RealtyMyths Weekly Word Wizard

Real Estate Weekly Word Wizard.

Welcome back to RealtyMyths weekly word wizard. Here are some terms that you should know before buying your first home.

DTI — Debt-to-Income. The total percent of a borrower’s income that is paid toward debt each month calculated as a ratio of a borrower’s gross monthly income over his debts including car payments, student loans, and credit card bills. A borrower’s DTI affects his credit rating.

FSBO — For Sale By Owner. The owner of the property is selling without a real estate agent.

LTV — Loan-to-Value. The ratio of the amount of money borrowed over the appraised value of the home. It is a key risk factor that lenders consider when evaluating a loan application.

PITI — Principal, Interest, Taxes, and Insurance. The major homeownership costs included in many monthly mortgage payments.

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