Home Affordability Analysis Item 1. Amount of annual income 2. Monthly income (item no. 1 + 12) 3. Lenders affordability ratio (in decimal form) 4. Maximum monthly mortgage payment (PITI) - (Item 2 x Item 3) 5. Estimated monthly prop. Tax and homeowner's insurance payment 6. Maximum monthly loan payment (Item 4 - Item 5) 7. Approximate average interest rate on loan 8. 9. 10. 11. 12. 13. 14. 15. 16. Description Planned loan maturity (years) Mortgage payment per P10,000.00 (using item 7 and item 8 and table of monthly mortgage payments Maximum loan based on monthly income (P10,000.00 x item 6 + item 9) Funds available for making a down payment and paying closing costs Funds available for making a down payment (Item 11 x 0.67) Maximum purchase price based on available monthly income (item 10 + item 12) Maximum acceptable down payment (in decimal form) Maximum purchase price based on down payment (item 12 + item 14) Maximum home purchase price (lower of item 13 and item 15) € Amount 75,000 6,267 0.28 1,755 375 1,380 6% 30 59.96 230,000 30,000 20,100 250,100 0.10 201,000 201,000

Home Affordability Analysis Item 1. Amount of annual income 2. Monthly income (item no. 1 + 12) 3. Lenders affordability ratio (in decimal form) 4. Maximum monthly mortgage payment (PITI) - (Item 2 x Item 3) 5. Estimated monthly prop. Tax and homeowner's insurance payment 6. Maximum monthly loan payment (Item 4 - Item 5) 7. Approximate average interest rate on loan 8. 9. 10. 11. 12. 13. 14. 15. 16. Description Planned loan maturity (years) Mortgage payment per P10,000.00 (using item 7 and item 8 and table of monthly mortgage payments Maximum loan based on monthly income (P10,000.00 x item 6 + item 9) Funds available for making a down payment and paying closing costs Funds available for making a down payment (Item 11 x 0.67) Maximum purchase price based on available monthly income (item 10 + item 12) Maximum acceptable down payment (in decimal form) Maximum purchase price based on down payment (item 12 + item 14) Maximum home purchase price (lower of item 13 and item 15) € Amount 75,000 6,267 0.28 1,755 375 1,380 6% 30 59.96 230,000 30,000 20,100 250,100 0.10 201,000 201,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Buy On Time or Pay Cash Cost of Borrowing 1. 2. 3. 4. 5. 6. 7. 8. Cost of Paying Cash 9. 10. Terms of the loan a. Amount of the loan b. Length of the loan (in years) c. Monthly payment Total loan payments made ($ per month Less: Principal amount of the loan Total interest paid over life of loan Tax considerations: - Is this a home equity loan? - Do you itemize deductions on your federal tax return? What federal tax bracket are you in? Taxes saved due to interest deductions ($ %) Total after-tax interest cost on the loan X months) Annual interest earned on savings (6% X Annual after-tax interest earnings ($ %) X $10,000.00 5 $188.70 no yes 35% $ $ $ 00 00 $
Calculate the housing expense ratio and the total obligation ratio (in %) for the following mortgage applications. (Round your answers to two decimal places.) Housing Total Obligations Ratio (%) Monthly Other Monthly Financial Monthly Applicant Gross PITI Expense Ratio (%) Income Expense Obligations Martin $3,700 $705 $740 % %
Calculate the housing expense ratio and the total obligation ratio (in %) for the following mortgage applications. (Round your answers to two decimal places.) Monthly Other Monthly Housing Expense Ratio (%) Monthly Total Applicant Financial Obligations Ratio (%) Gross PITI Income Expense Obligations Martin $3,700 $605 $620 % Need Help? Read It I (1 Deintel DDECM ncO 14 IL015 MI ACK V oUD TO ACUED DDACTICE ANOTLUED DETALLC MY NOTES
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 Gross PITI Financial Obligations Ratio (%) Income Expense Obligations Martin $3,900 $705 $730 19.05 X % 38.78 X %
What is Debt Service? O 12 Monthly Payments O The Cash-Flow after Mortgage Expenses O Loan Amount O Annual Interest Expense
Determine the monthly payment for the installment loan. Use the installment payment formula m = 1- Amount Financed (P) $1,440 O A. $179.15 B. $35.15 O C. $125.26 O D. $366.02 P n 1+) - not Annual Percentage Rate (r) 8% Number of Payments per Year (n) 12 Time in Years (t) 4
1. Calculate the Gross Debt Service (GDS) and the Total Debt Service (TDS) ratios for the following data. Monthly mortgage payment = $2,725 Property taxes = $325 Heating costs $240 Other housing costs = $195 Personal loan payment = $275 Car loan payment = $325 Credit card payment = $275 Gross monthly household income = $14,050
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 (%) %
Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table. (Round dollar amounts to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment FinanceCharge Finance Chargeper $100 APR $17,950 48 $551.47 $ $ %
Find the annual percentage rate using the annual percentage rate table. Here are some conditions of the loan. amount financed: $11500 finance charge: $2875 number of monthly payments: 42
Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using the APR formula. (Round dollar amounts to the nearest cent and percentages to one decimal place.) AmountFinanced Number ofPayments MonthlyPayment FinanceCharge APR $18,300 72 $424.08 $ %
Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table, Table 13-1. (Round dollar amounts to the nearest cent.) Finance Charge per $100 Amount Number of Monthly Payments Finance APR Financed Payment Charge $17,950 48 $561.47 $