Back-End Ratio

Bankers are notoriously stingy. Remember applying for your first car loan, and the banker in the polyester suit telling what you can afford versus what you desired? BMW versus a Ford?

He or she was basing that yes-or-no decision on your back-end ratio. No, that is not the size of your butt compared to your waist. A back-end ratio is just a calculation to show how much dough you have left from your current income after paying your current bills. Most banker boys (or girls) call it a debt-to-income ratio.