Many lenders use the 28/36 rule in evaluating mortgage applications.If your mortgage payment itself is 28% of your gross income,that means that the remainder of your monthly debt must be ________% or less.

Question

Quizplus · Accepted Answer

The 28/36 rule states that your mortgage payment should not exceed 28% of your gross income, and your total debt payments including the mortgage should not exceed 36% of your gross income. Therefore, to find the remainder of your monthly debt, you would subtract your mortgage payment from the 36% limit.

That would be:
36% - 28% = 8%

So, the remainder of your monthly debt must be 8% or less. Therefore, the best answer is C) 8.

Many Lenders Use the 28/36 Rule in Evaluating Mortgage Applications