Asked by a

Bessie has an annual salary of $51,360. Each month she has a car payment of $210 and a student loan of $50. If she applies for a home loan, how likely is it Bessie 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.


Please select the best answer from the choices provided

A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
A

Monthly income = 51,360/12 = 4,280. Monthly debt = 210 + 50 = 260.
DTI = 260/4,280 ≈ 0.0608 ≈ 6.1%, which is well below typical allowable DTI limits (e.g., ~36%), so very likely to be approved.