The total household income available is $4032. Mortgage payments including taxes, principal, and interest are $1174. In addition, there are condo fees of $150 and heating costs of $65 monthly and a car lease of $241. What is the total debt service ratio?

Question

Quizplus · Accepted Answer

The total debt service is the sum of mortgage payments, condo fees, heating costs, and car lease: $1174 + $150 + $65 + $241 = $1630. The total debt service ratio is calculated by dividing the total debt service by the total household income: $1630 / $4032 = 0.404 or 40.4%.

The Total Household Income Available Is $4032