Finance
A Kentucky borrower's total monthly debt payments (mortgage + other debts) is $2,100 on a gross monthly income of $6,000. Their back-end (total) debt ratio is:
A28%
B35%✓ Correct
C43%
D30%
Explanation
Back-end (total) debt ratio = Total monthly debt payments / Gross monthly income. $2,100 / $6,000 = 0.35 = 35%. This is within the conventional guideline of 36-43%, so the borrower likely qualifies.
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