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.\

Explanation:

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.

Answer:

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."