Many Lenders Use the 28/36 Rule in Evaluating Mortgage Applications

question 63

Multiple Choice

Many lenders use the 28/36 rule in evaluating mortgage applications.If your mortgage payment itself is 28% of your gross income,that means that the remainder of your monthly debt must be ________% or less.

• A)6
• B)7
• C)8
• D)28
• E)36

Calculate conditional probabilities and understand their implications.

Distinguish between mutually exclusive (disjoint) and non-exclusive events.

Apply probability rules to calculate complements of events.

Grasp the significance of independence in event outcomes.

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Definitions:

UCC Section 3-604

UCC Section 3-604 pertains to the discharge of negotiable instruments under the Uniform Commercial Code, primarily focusing on the cancellation or release of an obligation through payment or other means.

Liability

A legal responsibility or obligation, possibly arising from contracts, torts, or statutes.

Negotiable Instrument

A document in writing that assures the payment of a precise sum of money, payable either upon request or at a predetermined time, and includes the name of the individual to whom the money is to be paid.

Enforce

The act of compelling compliance or obedience to a law, rule, agreement, or order.