Finance
A Kentucky borrower's mortgage payment is $1,800/month. Their gross monthly income is $5,400. This borrower's housing expense ratio is:
A30%
B33%✓ Correct
C28%
D25%
Explanation
Housing expense ratio = Monthly mortgage payment divided by Gross monthly income. $1,800 / $5,400 = 0.333 = 33.3%. This exceeds the conventional guideline of 28%, which may make qualifying more difficult.
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