In order to minimize the difficulty associated with meeting monthly loan payments,the debt service ratio should be
A)above 50%.
B)below 50%.
C)at 35%.
D)below 35%.
E)above 20%.

Question

Quizplus · Accepted Answer

A debt service ratio below 35% is ideal because it means that only a small portion of the borrower's income is being used to pay off their loans, leaving them with a greater amount of money for other expenses. A ratio above 35% indicates that the borrower may have difficulty meeting their monthly loan payments, which can lead to default and financial problems. Therefore, a debt service ratio below 35% is the best choice for minimizing the difficulty associated with meeting monthly loan payments.

In Order to Minimize the Difficulty Associated with Meeting Monthly