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