The following are all monthly expenses.

1. Mortgage payment $800 2. Car payment 250 3. Property taxes 90 4. Mortgage insurance 30 5. Electric bill 50 6. Telephone bill 75

The applicant is trying to qualify for a mortgage. The lender is using ratios of 28% and 36%. Show the calculation that the buyer qualifies by:

a. the mortgage debt ratio only. c. both the mortgage and total debt ratios b. the total debt ratio only d. neither ratio