Applications and Underwriting chapter 10

The _______________ measures the monthly mortgage payment plus any other regular obligations against the stable monthly income.

Debt to income ratio

A ________________ measures the monthly mortgage payment alone against the stable monthly income

Housing expense to income ratio

An underwriter adds up the income from all acceptable sources to determine the applicant's

Stable monthly income

Many underwriters use _____________________ to help evaluate how likely or unlikely it is that the applicant will eventually default on the proposed loan.

credit scores

An individual's _______________________ is determined by subtracting total personal liabilities from total personal assets.

net worth

The funds that a borrower has left over after closing, available in case of emergency, are referred to as __________________________

reserves