Front-end ratio is the ratio of monthly housing expenses to all expenses.

Front-end Ratio

A financial ratio that compares a person’s gross monthly income to his or her monthly housing costs.

Housing Expenses

Costs associated with owning or renting a living space, including mortgage or rent, utility bills, property taxes, and maintenance fees.

Comprehend and examine the idea of ratio and its use in making financial judgments related to personal earnings and expenditures.

Verified Answer

Final Answer :

False

Explanation :

Front-end ratio is the ratio of monthly housing expenses to gross monthly income, not to all expenses.

Learning Objectives

Comprehend and examine the idea of ratio and its use in making financial judgments related to personal earnings and expenditures.