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29 May, 07:35

A buyer anticipates a house payment of $1,000 per month, with monthly homeowner association fees of $150. The buyer also has a car payment of $400 per month. If the buyer earns a monthly gross income of $5,000, what is the total debt ratio?

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  1. 29 May, 10:01
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    Step-by-step explanation:

    The buyer anticipates a house payment of $1,000 per month, with monthly homeowner association fees of $150. The buyer also has a car payment of $400 per month. If the buyer earns a monthly. This means that the buyer's monthly debt payments is

    1000 + 150 + 400 = $1550

    Debt ratio = monthly debt payments/monthly gross income

    If the buyer earns a monthly gross income of $5,000, then

    Debt ratio = 1550/5000

    = 0.31
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