Many Lenders Will Hold Dave to the 28/36 Rule in Evaluating

question 82

Multiple Choice

Many lenders will hold Dave to the 28/36 rule in evaluating his application for a mortgage.What does the 36 mean?

• A)A down payment of 36 months is required.
• B)A down payment of 36% is required.
• C)Debt payments including mortgage must be less than 36% of his gross monthly income.
• D)Debt payments must be less than 36% of his monthly take-home pay.
• E)Mortgage insurance is required during the first 36 months of the loan.

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Definitions:

Benefits

Advantages or perks, often provided by employers to employees, such as health insurance, retirement plans, and paid time off.

Deontological Theory

A moral philosophy that evaluates the ethics of an action based on the action's adherence to rules or duties, regardless of the outcome.

Ethical Conduct

Behaviors and practices that comply with moral principles and professional standards, often guiding individuals and businesses in acting with integrity and fairness.

Self-Interest

Self-Interest describes actions or decisions motivated by personal gain, often without regard for others.