Finance
The debt-to-income (DTI) ratio used by West Virginia lenders compares:
AProperty value to loan amount
BMonthly debt payments to gross monthly income✓ Correct
CNet income to property taxes
DTotal assets to total liabilities
Explanation
DTI ratio = Total monthly debt payments ÷ Gross monthly income. Lenders use this ratio to assess a borrower's ability to manage monthly payments. Conventional loans typically require a DTI of 43% or less.
Related West Virginia Finance Questions
- Under RESPA, a kickback paid by a title company to a real estate broker for referring settlement business is:
- In West Virginia, a deed of trust differs from a mortgage in that a deed of trust involves:
- A West Virginia buyer's loan is for $180,000 at 6.5% annual interest. What is the monthly interest for the first payment?
- Private mortgage insurance (PMI) is typically required by West Virginia lenders when:
- Under the federal Truth in Lending Act (TILA), the Annual Percentage Rate (APR) disclosed to a West Virginia borrower:
- Under RESPA, a 'kickback' in a real estate transaction refers to:
- A West Virginia commercial property investor uses a 'participation mortgage' where the lender receives a portion of the property's income in addition to interest payments. This arrangement is known as:
- In a West Virginia deed of trust, the three parties are:
Practice More West Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free West Virginia Quiz →