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Mortgage Agent Licensing Practice Exam · Question

When calculating a borrower's Gross Debt Service (GDS) ratio, which of the following is typically NOT included?

The GDS ratio primarily considers housing-related costs, including mortgage principal and interest, property taxes, and heating. Monthly credit card payments ar

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Question: When calculating a borrower's Gross Debt Service (GDS) ratio, which of the following is typically NOT included?

Answer options:

  • Annual property taxes
  • Estimated annual heating costs
  • Annual principal and interest payments for the mortgage ✅ Monthly credit card payments

Correct answer: Monthly credit card payments

Explanation: The GDS ratio primarily considers housing-related costs, including mortgage principal and interest, property taxes, and heating. Monthly credit card payments are part of general debt and are used in calculating the Total Debt Service (TDS) ratio, not GDS.

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