Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment, and to spend no more than 36% of one's gross monthly income for one's total monthly debt. Suppose a family has a gross annual income of $39,600. a. What is the maximum amount the family should spend each month on a mortgage payment? b. What is the maximum amount the family should spend each month for total credit obligations? c. If the family's monthly mortgage payment is 80% of the maximum they can afford, what is the maximum amount they should spend each month for all other debt?
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- Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment, and to spend no more than 36% of one's gross monthly income for one's total monthly debt. Suppose a family has a gross annual income of $46,800. a. What is the maximum amount the family should spend each month on a mortgage payment? b. What is the maximum amount the family should spend each month for total credit obligations? c. If the family's monthly mortgage payment is 80% of the maximum they can afford, what is the maximum amount they should spend each month for all other debt? a. The maximum monthly mortgage payment should be $ b. The maximum monthly total credit obligations should be $ c. The maximum amount they should spend monthly on all other debt is $Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment and to spend no more than 36% of one's gross monthly income for one's total monthly debt. Suppose a family has a gross annual income of $37,200. a. What is the maximum amount the family should spend each month on a mortgage payment? b. What is the maximum amount the family should spend each month for total credit obligations? c. If the family's monthly mortgage payment is 80% of the maximum, they can afford, what is the maximum amount they should spend each month for all other debt? a. The maximum monthly mortgage payment should be $______. b. The maximum monthly total credit obligations should be $__________. c. The maximum amount they should spend monthly on all other debt is $________.Advice from most financial advisers states to spend no more than26%of one's gross monthly income for one's mortgage paynent and to spend no more than36%of ceie's gross miontily income for one's tolal monthly debt Sappose a family has a gruss annaal income of$48,000a. What is the masmum amount the family should spend each month on a morigage payment? b. What is the maximum amount the family should spend each month for lotal creda obligations? c. If the familys monthy mortgage poymect is so\% of the maximuni they can allotd. what is the maximum amount they should spend each manth for all ocher debe? a. The maimum monthy mortgage payment should be ? b. The mavimum monthly total credit obligations should be s 6. The maximum amount they should spend monthy on al other debt is s
- Here are the guidelines from most financial advisers:• Spend no more than 28% of your gross monthly income for your mortgage payment.• Spend no more than 36% of your gross monthly income for your total monthly debt. Suppose that your gross annual income is $240,000.a. What is the maximum amount you should spend each month on a mortgage payment? b. What is the maximum amount you should spend each month for total credit obligations? c. If your monthly mortgage payment is 90% of the maximum amount you can afford, what is the maximum amount you should spend each month for all other debt?Suppose a family has a gross annual income of $43,200. a. What is the maximum amount the family should spend each month on a mortgage payment? b. What is the maximum amount the family should spend each month for total credit obligations? c. If the family's monthly mortgage payment is 80%of the maximum they can afford, what is the maximum amount they should spend each month for all other debt?Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment, and to spend no more than 36% of one's gross monthly income for one's total monthly debt. If a family's gross annual income is $61,200, use appropriate computations to determine whether the family can afford a $210,000 40-year faxed-rate mortgage at 3.5%. Choose the correct answer below. OA The family can afford the mortgage because the monthly payment is greater than what they should pay each month. O B. The family can afford the mortgage because the monthly payment is less than what they should pay each month. OC. The family cannot afford the mortgage because the monthly payment is greater than what they should pay each month. -ces D. The family cannot afford the mortgage because the monthly payment is less than what they should pay each month.
- Suppose you earn a gross income of $2,920.00 per month and apply for a mortgage with a monthly PITI of $908.12. You have other financial obligations totaling $169.36 per month. If the lending ratio guidelines are as given in the table below, what type of mortgage, if any, would you qualify for? Mortgage Type Housing Expense Ratio Total Obligations Ratio FHA 29% 41% Conventional 28% 36% A. FHA only B. Conventional only C. FHA and Conventional D. None of the aboveThe annual income of a borrower is $74,000.00. What is the maximum dollar amount he can borrow to purchase a house if the bank requires that the borrower’s debt to income ratio not to exceed 36% of his gross monthly income. The borrower is making a monthly payment of $250.00 for an auto loan and the current mortgage rate is 6.97%. The borrower can afford a total of 20% for the down payment and a closing cost of $6,765.00.Use the advice given in the text from most financial advisors regarding mortgages to solve the problem. 1) Suppose that your gross annual income is $108,000. 1) (a) What is the maximum amount you should spend each month on a mortgage payment? (b) What is the maximum amount you should spend each month for total credit obligations? (c) If your monthly mortgage payment is 75% of the maximum amount you can afford, what is the maximum amount you should spend each month for all other debt? A) (a) $2520; (b) $3240; (c) $1350 B) (a) $2520; (b) $3240; (c) $90 C) (a) $2520; (b) $3240; (c) $1890 D) (a) $30,240; (b) $38,880; (c) $16,200 Use the preference table to answer the question. 2) The preference table shows the results of an election among A, B, and C. 42 C B A First choice Second choice A A B Third choice B C C nothed who is the winner and (b) Is the majority criterion satisfied? Number of votes 10 2)
- Your mortgage payment, monthly PMI, monthly house insurance, and monthly property tax should total no more than 38% of your gross monthly income. If the total is more, then you are borrowing too much money. With the following payments and income, have you borrowed too much money? Description Mortgage Payment Monthly PMI Monthly Property Tax Monthly Home Insurance Total Gross Monthly Income Percent of GMI Dollars $1613.86 $11.30 $19.37 $6.46 Round your answers to the nearest dollar. Calculate 38% of your gross monthly income. $5284.44 Calculate the total of your payment, PMI, insurance, and property taxes. Are you borrowing too much? O You're borrowing too much. O You're not borrowing too much.1. Consider a home mortgage of $150,000 at a fixed APR of 4.5% for 25 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. 2. Someone needs to borrow $11,000 to buy a car and the person has determined that monthly payments of $225 are affordable. The bank offers a 3-year loan at 7% APR, a 4-year loan at 7.5%, or a 5-year loan at 8% APR. Which loan best meets the person's needs? Explain. Question content area bottom Part 1 Which loan best meets the person's needs? (Round to the nearest cent as needed.) A. The first loan best meets the person's needs because the monthly payment of $enter your response here is less than the maximum budgeted amount of $225 per month. B. The second loan best meets the person's needs because the monthly payment of $enter your response here…. Mortgage with Points. Home loans sometimes involve "points," which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee. For example, if the loan is for $100,000 and 2 points are charged, the loan repayment schedule is calculated on a $100,000 loan but the net amount the borrower receives is only $98,000. Assume the interest rate is 1% per month. What is the effective annual interest rate charged on such a loan, assuming loan repayment occurs over 360 months? (LO5-4)