Elizabeths debt payment and income ratio

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Reference no: EM131452299

Elizabeth has a gross monthly income of $5,000. Her take-home pay is $3,500/month. She has student loan payments of $200/month, auto loan payments of $500/month, and a house loan payment of $1,200/month. She also has property taxes and homeowners insurance premium payments of $300/month. Elizabeth’s Debt Payment/Income ratio is:

A. 44% which is higher than recommended

B. 38% which is at the upper end of the “safe range”

C. 63% which is too high

D. 24% which is very good

Reference no: EM131452299

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