Total debt to income ratio is the relationship between the borrower's?

The total debt to income ratio is a critical metric used by lenders to assess a borrower's financial capacity to manage monthly debt obligations. This ratio specifically refers to the relationship between the borrower's total monthly debt obligations—such as mortgage payments, car loans, credit card payments, and any other debts—and their gross monthly income.

This relationship is vital in determining how much of a borrower's income goes towards servicing existing debts. A lower ratio typically indicates that a borrower has manageable debt levels relative to their income, making them a more favorable candidate for loan approval. Understanding this ratio helps lenders evaluate the borrower's ability to take on additional debt and make timely payments, thereby minimizing the risk of default.

The other options focus on different aspects of finance or home equity, which do not accurately define the total debt to income ratio. The essence of the ratio lies in the broad understanding of total monthly obligations against income, which is crucial for loan underwriting and risk assessment.