Debt payments-to-income ratios will likely be considered as you apply for a mortgage. The Focus on Personal Finance text suggests keeping this ratio…

1.    Debt payments-to-income ratios will likely be considered as you apply for a mortgage. The Focus on Personal Finance text suggests keeping this ratio below 20%. A mortgage lender will have their own ratio for all debt payments, including mortgage-to-income ratio, before they will consider approval. Using this information, answer the questions and show your calculations in the table below:

·        Net monthly income: $4,000

·        Expected full mortgage payment (PITI): $1,000

·        Student loan payment: $250

·        Car payment: $300

Enter your calculation and response in this column.