The 40% rule states that a borrower's total monthly debt payments, including their mortgage payment, should not exceed 40% of their gross monthly income.This rule is used by lenders to assess the borrower's ability to handle their debt and make timely payments.If the borrower's debt-to-income ratio exceeds 40%, they may be considered a higher risk to lenders and have difficulty qualifying for a mortgage.It is important to note that the 40% rule is not a hard and fast rule and may vary from lender to lender.Have you ever applied this rule?Say it with "YES" 🙋â€â™‚ï¸ or "NO" 🙅â€â™‚ï¸â¬‡ï¸Download the app now! - MO Investor App👉Traders - MO Trader App🔗 For disclaimer, visit our Share this with your investing buddy🔖 Save this post for future reference.â˜‘ï¸ Follow @motilaloswalgroup for more such content. #linkinbio #MotilalOswal #DidYouKnow #financefacts #didyouknowfacts #didyouknowfinance #trendingnow #knowledge #finance #goodreads #interestingfacts #investingsimplified #investing101 #financerules #financialliteracy
Posted on : 25 Jan 2023 11:21 AM
