When calculating the maximum home price using either the front ratio or the back ratio, one result is the maximum monthly payment the household can sustain. This amount covers:
a. Principal, interest, and escrow for taxes and insurance
b. The annual mortgage payment
c. The before-tax cash flow
d. The break-even occupancy level
e. The debt service coverage ratio
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When calculating the maximum home price using either the front ratio or the back ratio, one result i...
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