Mortgage Agent Licensing Practice Exam · Question
An applicant's Total Debt Service (TDS) ratio is calculated to be 40%. Their gross monthly income is $7,000, and their monthly P.I.T.H. is $2,000. What are their other monthly debt obligations, such as credit card payments and car loans?
The TDS ratio is (Monthly PITH + Other Monthly Debt Obligations / Gross Monthly Income) x 100. With a TDS of 40% and a gross monthly income of $7,000, total mon
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Question: An applicant's Total Debt Service (TDS) ratio is calculated to be 40%. Their gross monthly income is $7,000, and their monthly P.I.T.H. is $2,000. What are their other monthly debt obligations, such as credit card payments and car loans?
Answer options: ✅ $800
- $600
- $1,000
- $900
Correct answer: $800
Explanation: The TDS ratio is (Monthly PITH + Other Monthly Debt Obligations / Gross Monthly Income) x 100. With a TDS of 40% and a gross monthly income of $7,000, total monthly debt is $7,000 * 0.40 = $2,800. Subtracting the PITH of $2,000 leaves $800 in other monthly debt obligations.
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