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Mortgage Glossary

Housing Expense Ratio

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

The housing expense ratio, or front-end ratio, compares your total monthly housing payment to your gross monthly income.

What Housing Expense Ratio means

It includes principal, interest, taxes, insurance, and any HOA dues. Lenders use it alongside the back-end ratio to judge affordability. Limits vary by program, often around 28% to 31%.

Florida example

A buyer earning $8,000 a month with a $2,200 housing payment had a 28% housing expense ratio, right at the conventional guideline.

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Related Mortgage Terms

Housing RatioHUD-1 Settlement StatementHybrid ARM
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