Jim has an annual salary of $96,000. His monthly expenses include a $2,500 mortgage payment, a $250 lease payment, $500 in minimum credit card payments, and a $425 payment on his speed boat. He also receives $1,200 in interest from his savings and other accounts each month. Calculate Jim’s DTI (debt-to-income) ratio.
Why is credit history such an important factor in being considered for a loan?
Joey would like to apply for a loan but knows that his high debt-to-income (DTI) ratio will probably get in his way. He would like to lower his DTI ratio by lowering the amount of his gross monthly income that goes to living expenses. Joey's current monthly expenses include a rent payment of $1,100, a $178 car payment, and a combined minimum payment of $220 for his credit card debt. His current gross monthly income is $3,600. If Joey moves to a new apartment, what is the maximum monthly rent payment he can make and still maintain a DTI ratio of 36%?
Trish is having trouble understanding why she was not approved for her loan. Which of the following probably kept Trish from getting her loan?
Which of the following is something you would not expect to see on a basic loan application?
Cindy would like to apply for a loan but knows that her debt-to-income (DTI) ratio will keep her from being approved. Her monthly expenses include an $800 rent payment, a $230 car payment, a $175 student loan payment and a $160 minimum payment for all three of her credit cards combined. Her current gross monthly income is $2,900.What minimum additional gross monthly income does Cindy need to get her DTI down to 36%?
Collateral can be beneficial for borrowers when applying for a loan by __________.
Which of the following is information a basic loan application would not ask you for?
What percent does a lender generally look for when considering the debt-to-income (DTI) ratio of a loan applicant?
In order to approve a loan, lenders want to see a credit score of at least _____.
Did you find these answers helpful?