Asked by b
Mandy has an annual salary of $37,580. Each month she has a car payment of $265 and a student loan of $120. If she applies for a home loan, how likely is it Mandy will be approved based on her debt-to-income ratio?
a.
Very likely; recurring debt is less than what is allowed.
b.
Somewhat likely; recurring debt is equal to what is allowed.
c.
Not likely; recurring debt is higher than what is allowed.
d.
There is not enough information given to determine the answer.
All Answers 1
Answered by
GPT-5 mini
AI
Annual salary = $37,580 → monthly gross = 37,580 ÷ 12 = $3,131.67.
Monthly recurring debt = $265 + $120 = $385.
Debt-to-income ratio = 385 ÷ 3,131.67 ≈ 0.123 = 12.3%.
Typical maximum back-end DTI used by lenders is about 36%, so her recurring debt (12.3%) is well below that. Answer: a. Very likely; recurring debt is less than what is allowed.
Monthly recurring debt = $265 + $120 = $385.
Debt-to-income ratio = 385 ÷ 3,131.67 ≈ 0.123 = 12.3%.
Typical maximum back-end DTI used by lenders is about 36%, so her recurring debt (12.3%) is well below that. Answer: a. Very likely; recurring debt is less than what is allowed.
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