What is the back-end DTI for a borrower making $60,000 annually and whose spouse makes $3,000 monthly with total liabilities of $2,350?

To determine the back-end debt-to-income (DTI) ratio for the borrower, we first need to calculate their total monthly income. The borrower earns $60,000 annually, which translates to a monthly income of $5,000 ($60,000 divided by 12 months). The spouse earns $3,000 monthly. Now we add both incomes together:

$5,000 (borrower's monthly income) + $3,000 (spouse's monthly income) = $8,000 total monthly income.

Next, we take the total liabilities, which amount to $2,350 monthly. The back-end DTI ratio is calculated by dividing the total monthly debts (liabilities) by the total monthly income and then multiplying by 100 to express it as a percentage:

Back-end DTI = (Total Monthly Liabilities / Total Monthly Income) * 100

Back-end DTI = ($2,350 / $8,000) * 100.

Calculating this yields:

Back-end DTI = 0.29375 * 100 = 29.375%.

When rounded to two decimal places, this is 29.38%. Therefore, this aligns with the answer that was given.

This signifies that 29