medium · Certified Financial Planner General Principles
The Moreau family has a gross monthly income of $14,000. Their monthly PITI is $3,640, and they have other recurring debt payments (auto and student loans) totaling $1,540.
How do these figures compare to standard professional benchmarks for housing and total debt?
- Both the housing ratio and the total debt ratio are within the recommended guidelines.
- Both ratios exceed the standard professional guidelines for a household of this income level. In this case
- The housing ratio is within the 28% guideline, but the total debt ratio exceeds the 36% guideline.
- The total debt ratio is within the 36% guideline, but the housing ratio exceeds 28%.
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