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 60%.
D) below 35%.
E) above 20%.

Question

Quizplus · Accepted Answer

The lower the debt service ratio, the better. A ratio below 35% indicates that the borrower has enough income to comfortably meet their loan payments each month. Anything above that puts the borrower at risk of defaulting on their loan.

In Order to Minimize the Difficulty Associated with Meeting Monthly