Question $18$

Assume monthly Principal and interest on a mortgage loan is $$635$; monthly Tax and insurance payments is $$125$; monthly student loan payment is $$350$; borrower gross monthly income is $$2,500.$

Calculate the Back$-$end ratio for this borrower.

$44\mathrm{.}4\%$

$40\mathrm{.}25\%$

$47\mathrm{.}42\%$

$38\mathrm{.}91\%$