property tax should total no more tha total is more, then you are borrowing and income, have you borrowed too r Description Mortgage Payment Monthly PMI Monthly Property Tax Monthly Home Insurance Gross Monthly Income Dollars $1613.86 $11.30 $19.37 $6.46 $5284.44

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
icon
Related questions
Question
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.
Transcribed Image Text: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.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Mutual Funds
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education