QUESTION IMAGE
Question
determine whether the statement is true or false. if the statement is false, make the necessary change(s) to produce a true statement
financial advisors suggest spending no more than 5% of your gross monthly income for your mortgage payment.
choose the correct answer below.
a. the statement is true because spending more than 5% of gross monthly income on mortgage payments can result in accumulating debt.
b. the statement is false. the true statement is \financial advisors suggest spending no more than 50% of your gross monthly income for your mortgage payment.\
c. the statement is false. the true statement is \financial advisors suggest spending no more than 36% of your gross monthly income for your mortgage payment.\
d. the statement is false. the true statement is \financial advisors suggest spending no more than 28% of your gross monthly income for your mortgage payment.\
Financial advisors typically recommend that mortgage payments (along with other debt payments) should be no more than around 28% - 36% of gross monthly income for housing - related costs (mortgage, taxes, insurance). The 5% figure is too low. Option D's correction to 28% aligns with standard financial advice for mortgage - related spending as a percentage of gross monthly income. Option A is wrong as 5% is not the standard. Option B's 50% is too high. Option C's 36% is often for total debt (including mortgage), but for just mortgage, 28% is more typical for the front - end ratio.
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D. The statement is false. The true statement is "Financial advisors suggest spending no more than 28% of your gross monthly income for your mortgage payment."