What is a debt-to-income ratio?(1 point)

Responses

the value of the borrower’s assets that determine the borrower’s financial worth
the value of the borrower’s assets that determine the borrower’s financial worth

the borrower’s monthly income divided by the borrower’s monthly payments
the borrower’s monthly income divided by the borrower’s monthly payments

a measurement used by lenders to measure a borrower’s ability to repay a loan
a measurement used by lenders to measure a borrower’s ability to repay a loan

a percentage of the loaned funds paid to the lender by the borrower in addition to the principal

3 answers

A debt-to-income ratio is a measurement used by lenders to measure a borrower’s ability to repay a loan.

Which type of loan is typically used to buy the home in which a person lives?(1 point)
Responses

mortgage
mortgage

credit card
credit card

student loan
student loan

business loan
business loan

The type of loan typically used to buy the home in which a person lives is a mortgage.