You estimate your monthly mortgage principal and interest will be $3400, property taxes will be $160 per month, and homeowner'sinsurance will be $50 per month. If your gross monthly income is $6400 per month and your tax rate is 40 percent, what is yourmortgage debt service ratio?O 70.27%62.51%90.25%O 56.41%

Mortgage debt services ratio is quite extensively used in granting the mortgage loans. That show…

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gage debt service ratio? O 70.27% O 62.51% O 90.25% O 56.41%

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter5: Making Automobile And Housing Decisions

Section: Chapter Questions

Problem 8FPE

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Question

You estimate your monthly mortgage principal and interest will be $3400, property taxes will be $160 per month, and homeowner's
insurance will be $50 per month. If your gross monthly income is $6400 per month and your tax rate is 40 percent, what is your
mortgage debt service ratio?
O 70.27%
62.51%
90.25%
O 56.41%

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