Question

A borrower makes $60,000 per year. The borrower's spouse makes $3,000 per month. The borrowers' monthly housing expense is $1,500. They have a car payment of $500, a boat payment of $350, a phone bill of $150, and a car insurance payment of $100.


Required:

What is the couple's back-end DTI?

Answer 1

Based on the information given the couple's back-end DTI is 29.38%.

Couple's back-end DTI

First step

Borrower 1's annual income=$60,000/ 12 month

Borrower 1's annual income= $5,000

Second step

Total monthly income =$3,000+ $5,000

Total monthly income=$8,000

Third step

Couple's back-end DTI=$1,500+$500+$350/$8,000

Couple's back-end DTI=$2,350/$8,000

Couple's back-end DTI=29.38%

Inconclusion the couple's back-end DTI is 29.38%.

Learn more about couple's back-end DTI here:https://brainly.com/question/26258146