In Ascertaining Whether a Borrower Has the Ability to Pay

question 13

Multiple Choice

In ascertaining whether a borrower has the ability to pay off his loan over time, a mortgage bank may rely on calculating a total debt ratio as part of its underwriting process. Utilizing the following information, calculate the total debt ratio. Monthly principal and interest on mortgage loan: $635, Monthly Tax and insurance payments into escrow: $125, Monthly Car lease payment (lease term is 3 years) : $350, Gross monthly income: $2,500

• A) 25.4%
• B) 30.4%
• C) 44.4%
• D) 53.2%

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Definitions:

Nonneoplastic Dysplasia

refers to abnormal growth or development of cells within tissues and organs that is not cancerous.

Neoplastic

Pertaining to, or characterized by, neoplasms (tumors), which are abnormal growths of tissue that may be benign or malignant.

Vaginal Intraepithelial Neoplasia

A pre-cancerous condition involving abnormal cell growth in the lining of the vagina.