What term describes the monthly income before any deductions have been made?

The term that describes the monthly income before any deductions have been made is Gross Monthly Income. This figure represents the total earnings an individual receives each month from all sources, including wages, salaries, bonuses, and any additional income streams, without accounting for taxes or other deductions.

Gross Monthly Income is a critical metric used by lenders when assessing a borrower's ability to repay a mortgage. It provides a clear picture of a person's financial situation and is often used to calculate debt-to-income ratios, which are essential for determining loan eligibility.

In contrast, Net Income refers to the amount remaining after all deductions (such as taxes and retirement contributions) have been taken out. Taxable Income is the portion of income that is subject to taxes, not the total income earned. Disposable Income refers to the amount of income left after taxes have been deducted and is available for spending or saving. All these terms represent different aspects or interpretations of income, but Gross Monthly Income specifically encompasses total earnings before any deductions, making it the correct choice in this context.