93. Using the relevant information shown in the picture, what is a potential purchaser's housing expense ratio?Monthly salary (husband): $6,248.67Monthly salary (wife): $7,414.33Monthly mortgage payment: $2,100Interest rate: 6.5%Term of loan: 30 yearsAnnual property tax: $5,500Annual property insurance: $6,500Monthly credit card: $300Car payment: $250(a) 9%(b) 23%(c) 25%(d) 31%

The housing expense ratio (also known as the front-end ratio) is calculated as the percentage of a…

Answered: 93. Using the relevant information…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Conchita Martinez will have a monthly interest and principal payment of $1,820.68. Her monthly real estate taxes will be $57.06 and her monthly homeowner's insurance payments will be $89.47. If her gross monthly income is $6,778.27, find the housing ratio. Question content area bottom Part 1 The housing ratio is= (Round to two decimal places as needed.)
The total monthly payment for a home mortgage loan isaffected by the property tax and insurance. This amount isaround 15% of the principal plus interest payment that youcalculated in the previous problem. Moreover, as a rule ofthumb, a family should not devote more than 28% of itsgross income for home loan payments. With this information,find the amount that a family must earn to afford a$200,000 mortgage loan using the APRs of the previousproblem.
Suppose you obtain a 30 year mortgage loan of 197,000$ at an annual interest rate of 8.1%. The annual property tax bill is $967 and the annual fire insurance premium is 495$. Find the total monthly payment for the mortgage, property tax, and fire insurance.
Calculate the housing expense ratio and the total obligation ratio (in %) for the following mortgage applications. (Round your answers t Monthly Gross Income Monthly PITI Other Monthly Financial Obligations Housing Expense Ratio (%) Total Obligations Ratio (%) Applicant Expense Emerson $2,900 $777 $290 %
fill out the worksheet using the following information: Theoretical Housing Situation: Renting: Monthly Rent: $1,800 Renter’s Insurance: $200 per year Security Deposit: $2,000 After-tax Savings Rate: 5% Buying: Home Price: $250,000 Down Payment: $50,000 Loan Amount: $200,000 Loan Term: 25 years Interest Rate: 3.5% Property Taxes: 1.25% of the home price Homeowner’s Insurance: 0.4% of the home price Maintenance Costs: 1.5% of the home price Closing Costs: $5,000 After-tax Rate of Return: 4% Tax Rate: 25% Estimated Annual Appreciation: 2%
Calculate the DTI ratio (in percent) for a borrower who has a gross monthly income of $4,875 and has a minimum credit car bill of $125, a car lease payment of $276.78 and a student loan payment of $216, and who is applying for a loan with a monthly payment of $2,021.79. (Round your answer to the nearest tenth of a percent.)
Solve B.
Calculate the housing expense ratio and the total obligation ratio (in %) for the following mortgage applications. (Round your answers to two decimal places.) Applicant Emerson Monthly Monthly Gross PITI Income Expense $2,700 $633 Other Monthly Financial Obligations $270 Housing Expense Ratio (%) % Total Obligations Ratio (%) %
1. has After moving, a homeowner's annual insurance premium increased from $480 to $710 per year. Calculate the due if there are 3 months left in the additional amount policy year. pay when 2. State two additional costs that a purchaser may have to purchasing a new home. Explain what these additional costs are. Use the chart below. Additional Costs Explanations
Question
A homeowner has five years of monthly payments of $1,100 before she has paid off her house. If the interest rate is 6% APR, what is the remaining balance on her loan? ..... A. $79,657 B. $45,518 C. $68,278 D. $56,898
Question Help The Adeeva's gross monthly income is $6300. They have 18 remaining payments of $230 on a new car. They are applying for a 20-year, $172,000 mortgage at 6.5%. The taxes and insurance on the house are $360 per month. The bank will only approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their adjusted monthly income. Click here for table of Monthly Payments a) Determine 28% of the Adeeva's adjusted monthly income. (Round to the nearest cent.) TO b) Determine the Adeeva's total monthly mortgage payment, including principal, interest, taxes, and homeowners' insurance. et e cart 1 $6 (Round to the nearest cent.) c) Do they qualify for this mortgage? No O Yes

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