Your friends just told you that they were denied a mortgage by their bank.The loan officer told them that they did not pass the 36 percent rule.They are confused and want you to explain what happened?

Question

Quizplus · Accepted Answer

The 36 percent rule is a general guideline used by lenders to determine how much debt someone can take on based on their income. If your debt payments, including your potential mortgage payment, exceed 36 percent of your income, you may be denied a mortgage. This can happen if the house you were looking at is too expensive, if you don't have a large enough down payment, or if you already have too much debt. Therefore, all of the above options could be correct.

Your Friends Just Told You That They Were Denied a Mortgage