As a rule, the housing cost ratio should NOT exceed what percentage of gross monthly income? A) 22% B) 20% C) 28% D) 36%
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The housing cost ratio is a measure used to determine what portion of a person's gross monthly income is spent on housing costs, which typically include mortgage payments, property taxes, and insurance. Show more…
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Which of the following correctly states the “rule of thumb” formula traditionally used by lenders in determining whether or not a prospective buyer can afford a particular housing purchase? Group of answer choices The monthly cost of buying and maintaining the home should not exceed 36% of the borrower’s gross monthly income, and the payments on all debts together should not exceed 28% of the buyer’s monthly income. The monthly cost of buying and maintaining the home should not exceed 28% of the borrower’s gross monthly income, and the payments on all debts together should not exceed 36% of the buyer’s monthly income. The annual cost of buying and maintaining the home should not exceed 50% of the borrower’s gross annual income, and the payments on all debts together should not exceed 64% of the buyer’s annual income. The annual cost of buying and maintaining the home should not exceed 36% of the borrower’s gross annual income, and the payments on all debts together should not exceed 28% of the buyer’s annual income.
Mauya M.
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
Sri K.
The scatterplot above shows the relative housing cost and the population density for several large US cities in the year $2005 .$ The line of best fit is also shown and has equation $y=0.0125 x+61 .$ Which of the following best explains how the number 61 in the equation relates to the scatterplot? A) In $2005,$ the lowest housing cost in the United States was about $\$ 61$ per month. B) In $2005,$ the lowest housing cost in the United States was about 61$\%$ of the highest housing cost. C) In $2005,$ even in cities with low population densities, housing costs were nelow 61$\%$ of the national average. D) In 2005 , even in cities with low poulation densities, housing costs were likely at least 61$\%$ of the national average.
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