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Which of the following ratios is used to determine ones debt-to-income ratio? a. 20/28 b. 20/36 c. 28/30 d. 28/36 Please select the best answer from the choices provided A B C D Mark this and return

User Golldy
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2 Answers

2 votes

Answer:

D

Explanation:

User Shioban
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4 votes

Answer:

D 28/36

Explanation:

A person's debt-to-income can be calculated by dividing all his/her monthly debt payments by the gross monthly income. This number can be used for determining your ability to manage your monthly payments to repay the money you plan to borrow. In general, 43% is the highest DTI ratio a borrower can have and still get qualified for a mortgage, but lenders prefer a ratio lower than 36%, with no more than 28% of that debt going towards servicing a mortgage or rent payment. Thus, someone should spend at most 28% of his/her gross income on total housing expense and maximum of 36% on total debt service.

User MOrloff
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