Gross Debt Service Ratio Refers to a Calculation of All

question 67

True/False

Gross debt service ratio refers to a calculation of all mortgage-related financing and must not exceed 32 percent of total household income.

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Definitions:

Expected Total

The projected sum or outcome of a particular set of data or financial transactions over a specified period.

Dollar Sales

The total value of sales measured in monetary terms over a specific period of time.

Pretax Income

The amount of income earned by a business before taxes are deducted.

Fixed Costs

Expenses that do not change with changes in the volume of production or sales, such as rent, salaries, and insurance.