Florida Real Estate Practice Exam

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Prepare for your Florida Real Estate Exam with a comprehensive quiz featuring multiple-choice questions, hints, and detailed explanations. Gain the confidence you need to succeed in obtaining your real estate license!

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Which is used to determine if a property's income will cover its monthly mortgage payments?

  1. Credit service ratio

  2. Debt service coverage ratio

  3. Mortgage service ratio

  4. Income coverage ratio

The correct answer is: Debt service coverage ratio

The reason why other options may be incorrect are - Option A: While credit service ratio does factor in the income and debts of an individual, it is not specific to a property's mortgage payments. - Option C: Mortgage service ratio is similar to the debt service coverage ratio, but it only takes into account the mortgage payments and not other debts. - Option D: The income coverage ratio is a more general measure of an individual's overall income and expenses, and does not specifically focus on a property's mortgage payments.

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