What is the debt-to-income ratio for a Delaware borrower with $1,850 housing payment, $350 car payment, $250 student loan payment, and $6,500 gross monthly income?
Why 37.7% Is Correct
Answer A: 37.7%
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related Delaware Questions
- A mortgage 'point' equals:Finance
- Paired sales analysis is used in appraisal to:Property Valuation
- A Delaware buyer's gross monthly income is $7,500. Using a 43% back-end (total debt) ratio, what is the maximum total monthly debt (including housing)?Real Estate Math
- A Delaware property generates $4,200 monthly gross rental income. Using a GRM of 115 (monthly), what is the estimated value?Real Estate Math
- A Delaware property's potential gross income is $96,000. Vacancy is 7%. Operating expenses are $38,000. What is the debt service coverage ratio (DSCR) if annual mortgage payments are $42,000?Real Estate Math
- Reproduction cost in the cost approach is the cost to:Property Valuation
- What is the 'back-end ratio' (total debt ratio) in Delaware mortgage qualification?Finance
- A Delaware broker's monthly gross commission income is $18,500. The office overhead is 30% of GCI. The broker's take-home is $18,500 minus overhead. What is the broker's monthly income?Real Estate Math
Key Terms to Know
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Math Concepts
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →