Question: Which financial ratio do lenders use to evaluate whether a loan applicant makes enough money to pay the monthly mortgage payments? debt payment ratio mortgage

Which financial ratio do lenders use to evaluate whether a loan applicant makes enough money to pay the monthly mortgage payments?

debt payment ratio

mortgage debt service ratio

savings ratio

debt ratio

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

A company is trying to determine how to allocate its $145,000 advertising budget for a new product. The company is considering newspaper ads and television commercials as its primary means for...

Q:

1. Dominique earned $105,000 in 2018, 5% more than she did in 2017. She is a member of her employers private medical plan and paid $700 in premiums which were deducted directly from her pay. In...

Q:

As their daughter Lisa starts high school, Homer and Marge decide that it is time to take stock of their family finances to see how they will be able to pay for Lisas education. They have constructed...

Q:

Managerial Decision Making Six Decision Stages in Chapter 5 I. Identify and Diagnose the Problem Consider the following questions when identifying and diagnosing the problem: Is there a difference...

Q:

please help me with this case. case Question: Section 2 and 3. Thanks On December 21, 2012, Matt Pearson, a recently hired financial planner with J & L Financial Advisors, was sitting in on an...

Q:

please help me with this case. case Question: Section 5 More information about question, it is related to section 5. Question On December 21, 2012, Matt Pearson, a recently hired financial planner...

Q:

Question. 1.Calculate the price of a five-year bond that has a coupon of 6.5% and makes annual coupon payments. The current market yield is 5.75%. 2. Five years ago Thompson Tarps Inc. Issued 25-year...

Q:

Need help figuring out problem #40, #42, and #45 in the attached document. I have the answers for the problems, but need to see how they are worked out. FIN 142 - Real Estate Finance Problem Set 2 1....

Q:

BORROWING DEBT MANAGEMENT ANALYSIS AND HOUSING ANALYSIS Crystal would like your help in revising her financial plan. She still has not received the inheritance money and she is nervous about her...

Q:

QUESTION 1: After 10 years of marriage, Ashley and Charles have decided to separate. Charles will take the custody of the children and will stay home for the next 8 years. Since Charles will have no...

Q:

please me with this case. Question: Thanks On December 21, 2012, Matt Pearson, a recently hired financial planner with J & L Financial Advisors, was sitting in on an initial meeting with Lane Young,...

Q:

(Continuation of 17-36). Porter Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the Assembly department and the Finishing...

Q:

Refer to Data Set 1 in Appendix B and use the pulse rates of males. a. Find the mean and standard deviation, and verify that the pulse rates have a distribution that is roughly normal. b. Treating...

Q:

[ - / 1 Points ] SCALCET 9 7 . 8 . Determine whether the integral is convergent or divergent. If it is 0 1 1 x 8 d x Need Help?

Q:

What are the major types of subsequent events? Indicate how each of the following subsequent events would be reported. (a) Collection of a note written off in a prior period. (b) Issuance of a large...

Q:

The transactions listed below relate to Wainwright Inc. You are to assume that on the date on which each of the transactions occurred, the company's accounts showed only ordinary shares ($100 par)...

Q:

Taylor Ski Company manufactures snow skis. During the most recent accounting period, the companys finishing department transferred 5,000 sets of skis to finished goods. At the end of the accounting...

Q:

For each of the following subsequent events, indicate whether a company should (a) Adjust the financial statements, (b) Disclose in notes to the financial statements, or (c) Neither adjust nor...

Q:

Stans Southern Barbeque Supply Store orders mass-produced barbecue products from various suppliers. Stans maintains information about a contact person at each supplier along with all required address...

Q:

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

Q:

Suppose that a bin is filled with 10 red balls and 40 white balls. One ball is drawn at random from the bin and it is a red ball. mlo85 Required: a Assuming that the ball is put back into the bin and...

Q:

A firm has surveyed the quantity sold of its product for 100 days. The results are as follows: 269 Daily Number units of sale sold days 50 89382 30 15 40 20 30 60 30 70 5 100 Required: Construct a...

Q:

Suppose that a random variable X is normally distributed with an expected value of 2,000 and a standard deviation of 800. lo56 What is the probability of the random variable X realizing a value...