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Sally is ready to purchase her first home. The bank has advised her that they need to work on some ratios before letting her know if the mortgage is approved. What is Sally's Gross Debt Service (GDS) ratio based on the information she has provided?
Annual gross salary: $85,000
Monthly student loan $70
Estimated monthly mortgage payment: $1,650
Monthly car loan $120
Estimated annual property taxes: $1,500
Monthly loan to parents $50
Estimated monthly heating: $150
Monthly home renovation loan payments $150
Estimated annual condo fees $500
Monthly furniture loan $25
24%
16%
32%
34%
27%
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