Quick answer: Housing cost divided by gross monthly income.
Definition
Housing cost divided by gross monthly income.
Why it matters
Front-End Ratio matters because buyers need to understand the full cash-flow impact of a mortgage before committing to a home.
Related formula
True monthly cost = loan payment + ownership costs + utilities + maintenance reserve
FAQ
What does Front-End Ratio mean?
Housing cost divided by gross monthly income.
Why does it matter for affordability?
Front-End Ratio can change the true monthly cost or cash required to buy a home.
Where can I test it?
Use the TrueCost calculator to see how the term affects payment, DTI, or leftover cash.