The bank that the Payans would like to borrow from uses the back-end ratio to determine loan qualification, approving applications if the back-end ratio is less than 36%. So, the Payans have collected some information on what the bank will consider to calculate the ratio, including what they estimate their monthly mortgage payment will be. Income Total monthly $10,000 income Monthly Expenses Expected mortgage $1,100 House Insurance $150 Property taxes $500 Car loan(s) $1,000 Credit card debt $400 According to the Payans' back-end ratio calculation, the bank will most likely $250,000 to purchase the home because their back-end ratio is lend the Payans 36%.