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goldfiish [28.3K]
3 years ago
7

What percent does a lender generally look for when considering the debt-to-income (DTI) ratio of a loan applicant? a. Less than

or equal to 36% b. Less than or equal to 42% c. Less than or equal to 50% d. Less than or equal to 72%.
Mathematics
1 answer:
Aleksandr [31]3 years ago
3 0

Dept to income (DTI) is the ratio which refers the percentage of the gross monthly income which is used to pay the monthly dept payment. The percentage  a lender generally look for when considering the debt-to-income (DTI) ratio of a loan applicant is less than or equal to 36 percent. Thus option A is the correct option.

<h3>Dept to income ratio</h3>

Dept to income (DTI) is the ratio which refers the percentage of the gross monthly income which is used to pay the monthly dept payment. Dept to income ratio is a measure of financial that compare the amount of dept to the overall income.

A lender generally look some of the following things for when considering the debt-to-income (DTI) ratio of a loan applicant-

  • Lender looks for a low dept-to-income because with small dept to income ratio can be successfully mange monthly payments.
  • Lender prefer to look a 36 percent or smaller dept-to-income with not more than 28 percent of that dept going towards servicing your mortgage.
  • Back end ratio must be no more than 36 percent(including all monthly dept) and front end ratio must be no more than 28 percent.

Hence the percentage  a lender generally look for when considering the debt-to-income (DTI) ratio of a loan applicant is less than or equal to 36 percent. Thus option A is the correct option.

Learn more about the dept to income ratio here;

brainly.com/question/16087693

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