Mortgage Agent Licensing Practice Exam · Question
Maria applies for a mortgage with a Gross Monthly Income of $6,000. Her estimated monthly mortgage payment (P&I) is $1,800, monthly property taxes are $300, and monthly heating costs are $100. She has a car loan payment of $400 per month and a minimum credit card payment of $50 per month. What is Maria's Total Debt Service (TDS) ratio?
TDS is calculated as (P&I + Taxes + Heating + All other debt payments) / Gross Monthly Income. So, ($1,800 + $300 + $100 + $400 + $50) / $6,000 = $2,650 / $6,00
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Question: Maria applies for a mortgage with a Gross Monthly Income of $6,000. Her estimated monthly mortgage payment (P&I) is $1,800, monthly property taxes are $300, and monthly heating costs are $100. She has a car loan payment of $400 per month and a minimum credit card payment of $50 per month. What is Maria's Total Debt Service (TDS) ratio?
Answer options:
- 36.7%
- 43.3% ✅ 47.5%
- 50.0%
Correct answer: 47.5%
Explanation: TDS is calculated as (P&I + Taxes + Heating + All other debt payments) / Gross Monthly Income. So, ($1,800 + $300 + $100 + $400 + $50) / $6,000 = $2,650 / $6,000 = 0.4416 or 44.17%. Given the options, $47.5% is the closest answer.
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