what is the maximum loan for which a borrower can qualify if his annual income is $84,000, his monthly recurring debt is $746, his estimated monthly taxes and insurance escrow amount is $285, his loan factor is 6.32, and the qualifying ratios are 28 and 36?

Respuesta :

The debt ratio on max is $235,601

What is debt ratio?
The phrase "debt ratio" is a financial ratio which assesses how much leverage a business has. The ratio of total liabilities to total assets, expressed as just a decimal or percentage, is known as the debt ratio. The percentage of a company's assets that is financed by debt is one way to interpret it. An asset-to-asset ratio greater than 1 indicates that a significant portion of a company's assets are financed by debt, which indicates that the company has more than assets. If interest rates increase significantly, a company with a high ratio may be at risk of loan default. A ratio below 1 indicates that a greater portion of the a company's assets are funded by equity.

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