General Principles Ch 3 Flashcards
1
Q
What does PITI stand for?
A
Principal, Interest, Taxes (property only ) and Insurance (homeowners only)
2
Q
Capitalized Value
A
Annual Income / Capitalization Rate
3
Q
Housing expenses (PITI or rent) should reflect <= _____% of gross income 
A
28
4
Q
Total monthly debt should reflect <= ____% of gross income. 
A
36
5
Q
Total Monthly Debt
A
Includes principle, interest, auto loans, credit card debt, etc.
6
Q
Current Ratio
A
Current Assets divided by Current Liabilities
7
Q
Consumer debt should reflect less than or equal to ______% of net income.
A
20
8
Q
_______ subtract 401(k) contributions when calculating gross income.
A
Do not
9
Q
Debt ______ include taxes and insurance.
A
Does not
