Multiple Choice
In ascertaining whether a borrower has the ability to pay off his loan over time, a mortgage bank may rely on calculating a total debt ratio as part of its underwriting process. Utilizing the following information, calculate the total debt ratio. Monthly principal and interest on mortgage loan: $635, Monthly Tax and insurance payments into escrow: $125, Monthly Car lease payment (lease term is 3 years) : $350, Gross monthly income: $2,500
A) 25.4%
B) 30.4%
C) 44.4%
D) 53.2%
Correct Answer:
Verified
Correct Answer:
Verified
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