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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Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. (Refer to the images) Note: Round time value factor to 2 decimal places, intermediate and final answers to the nearest whole number. Mortgage Monthly gross income $ 4,700 Down payment to be made (percent of purchase price) 20% Other debt (monthly payment) $ 260 Monthly estimate for property taxes and insurance $ 490 30-year loan 8.0% 1.) What is the affordable monthly mortgage payment? 2.) What is the affordable mortgage amount? 3.) What is the affordable house purchase price?
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.
Find the following for a $200,000 fixed-rate mortgage and the given information. a) Monthly mortgage payment (principal and interest) b) Monthly house payment (including property taxes and insurance) c) Initial monthly interest d) Income tax deductible portion of initial house payment e) Net initial monthly cost for the home (considering tax savings) Annual Owner's Income Tax Property Tax $1188 Term of Mortgage 20 years Interest Rate 6% a) The monthly mortgage payment is $ (Round to the nearest dollar as needed.) Annual Insurance $624 Bracket 15%
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.)
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 (%) %
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
Calculate the housing expense ratio and the total obligation ratio (in %) for the following mortgage applications. (Round your answers to two decimal places.) Other Monthly Housing Expense Ratio (%) Monthly Monthly Total Applicant Financial Obligations Ratio (%) Gross PITI Income Expense Obligations Martin $3,300 $805 $840 % %

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