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What 2 ratio does mortgage lenders use to evaluate your ability to pay a loan?
debt to asset ratio income to outgo ratio
How can you control your debt ratio and debt to equity ratio?
how to control debt equity ratio
What is the maximum percentage of a borrower's income that can be used to make the monthly mortgage payment called?
Debt to income ratio
What effect does the declaration and payment of a cash dividend have on total liabilities and debt to equity ratio?
A dividend becomes a liability only after it has been declared. The debt to equity ratio changed because your liabilities after the declaration went up.
What are the five components of a credit score?
1. employment 2. asset to debt ratio 3. payment records 4. monthly payment outgo 5. collateral
What 2 ratio does mortgage lenders use to evaluate your ability to pay a loan?
debt to asset ratio income to outgo ratio
How can you control your debt ratio and debt to equity ratio?
how to control debt equity ratio
What is the maximum percentage of a borrower's income that can be used to make the monthly mortgage payment called?
Debt to income ratio
What effect does the declaration and payment of a cash dividend have on total liabilities and debt to equity ratio?
A dividend becomes a liability only after it has been declared. The debt to equity ratio changed because your liabilities after the declaration went up.
What are the five components of a credit score?
1. employment 2. asset to debt ratio 3. payment records 4. monthly payment outgo 5. collateral
What is the total debt of 1233837 and total assets of 2178990 what is the firms debt to equity ratio?
Debt equity ratio = total debt / total equity debt equity ratio = 1233837 / 2178990 * 100 Debt equity ratio = 56.64%
How do you calcute debit to ratio?
Your debt-to-income ratio compares the amount of your debt (excluding your mortgage or rent payment) to your income. To figure this out it is easiest to use monthly figures. Take you monthly bill amount and divide it by your monthly take home pay this will give you a decimal number which is your percentage of debt to income.
If debt ratio is point5 what is debt-equity ratio?
There is no such thing as "debt ratio." A ratio is a fraction,, it needs two numbers, one divided by the other. A debt/equity ratio of 0.5 is debt = $500, equity = $1000, or any other set of numbers that equals 0.5 or 50%.
How do you solve for debt to equity ratio with an equity multiplier of 2.47?
Equity Multiplier = 2.4 Therefore Equity Ratio = 1/EM Equity Ratio = 1/2.4 = 0.42 MEMORIZE this formula: Debt Ratio + Equity Ratio = 1 Therefor Debt Ratio = 1 - Equity Ratio = 1 - 0.42 = 0.58 or 58%
If the debt-equity ratio is 1.0 then the total debt ratio is?
The total debt ratio is .5; total debt would be .5 as well as total equity (both added together equal 1). Total debt ratio = .5 (total debt)/.5 (total equity)= 1.
How does increased debt affect the debt ratio?
Your Debt/Income Ratio is simply your total monthly mortgage + installment + revolving debt payments divided by your total month gross income. eg. If your income is $4000 / month, your mortgage payment is $1000/mo, Auto loan is $500/mo, and total credit card minimum payments are another $500/mo, then your debt/income ratio is $2000 / $4000 = 0.5 (50%) In most cases mortgage lenders do not like debt ratios over 45%.
How does your loan affect your co signers debt to income ratio?
You and your co-signer are both responsible for the entire car payment, so the payment would be applied to their debt to income ratio just as if it would be if they were the only person on the loan. Find out what car dealers don't want you to know at www.dealertricks.com it is the same as if she was to be buying the car it looks the same on her cedit Your cosigner's debt-to-income ratio would increase, since the debt would be reflected on their credit report the same as it shows on yours. Their debt-to-income ratio will not be restored until the loan is repaid in full. This can also reduce their credit score temporarily until the account is seasoned (2 years) and the debt balance is reduced to below roughly 30% of the original balance.
