Finance
A North Carolina buyer's monthly payment is $1,800 and their gross monthly income is $5,400. What is their front-end (housing) ratio?
A28%
B30%
C33%✓ Correct
D36%
Explanation
Front-end ratio = Housing payment / Gross monthly income = $1,800 / $5,400 = 0.333 or approximately 33%.
Related North Carolina Finance Questions
- Under RESPA, a 'controlled business arrangement' (affiliated business arrangement) must be disclosed when:
- The federal Homeowners Protection Act (HPA) requires lenders to automatically cancel PMI on a conventional loan when the LTV reaches:
- Which type of mortgage allows the borrower to pay only interest during the loan term, with the full principal due at maturity?
- A North Carolina buyer is purchasing a $300,000 home with 5% down. What is the loan amount?
- The loan-to-value (LTV) ratio is calculated as:
- The Loan Estimate provided under TRID includes all of the following EXCEPT:
- A 'balloon payment' mortgage in North Carolina requires:
- A conventional loan is best described as:
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →