You are a mortgage broker at Interamerican Bank. One of your clients, Bill Cramer, has submitted an application for a mortgage with a monthly PITI of $1,259. His other financial obligations total $654.50 per month. Bill earns a gross income of $4,890 per month. a. What is his housing expense ratio?
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- Problem: You are a mortgage broker at your local bank. Your cousin submitted an application for a mortgage with a monthly PITI of $1,319. His financial other obligations total $744.50. Your cousin earns a gross income of $5,005. (a) What is your cousin's expense ratio? (b) What is his total obligations ratio? (c) According to the Lending Ratio Guidelines in your textbook (Chapter 14, section II), for type of mortgage would Bool qualify, if any? Explain. (d) If your cousin decided to get a part-time job so he can qualify for conventional mortgage, how much additional monthly income would he need? (Set up an equation and solve it.)Before you are able to purchase a home you need to get pre-qualified and determine the maximum amount you can afford for the mortgage payment. The mortgage company that you visit uses the qualifying ratios 29/41. After speaking with the mortgage broker and answering several questions, the broker compiles this information regarding your income and expenses: You have a monthly income of $5,500. Your significant other that is living with your and will be on the loan earns $4,500 monthly. You have 2 car payments, one is $325 and the other is $280. Your significant other has a motorcycle payment of $450. You have a credit card payment of $25. Your significant other has a credit card payment of $180. The annual property tax in the area that you are considering to purchase the house has an average amount of $2800, while the average home insurance is $800 annually. Determine the anticipated monthly payment of the mortgage based on the given ratios. A) The Front-End (AKA: Housing) Ratio: ? B)…Carlos earns a gross income of $5,680 per month and applies for a mortgage with a monthly PITI of $1,476.80. Carlos has other financial obligations totaling $675.92 per month. If the lending ratio guidelines are as given in the table below. Lending Ratio Guidelines Mortgage Type Housing Expense Ratio Total Obligations Ratio FHA 29% 41% Conventional 28% 36% What type of mortgage, if any, would Carlos qualify for? 1. Carlos qualifies for an FHA mortgage under the lending guidelines, but not a conventional mortgage 2. Carlos qualifies for a conventional mortgage under the lending guidelines, but not an FHA mortgage. 3. Carlos qualifies for both an FHA mortgage and a conventional mortgage under the lending guidelines. 4. Carlos qualifies for neither an FHA mortgage and a conventional mortgage under the lending guidelines.
- Carlos earns a gross income of $5,580 per month and applies for a mortgage with a monthly PITI of $1,227.60. Carlos has other financial obligations totaling $887.22 per month. If the lending ratio guidelines are as given in the table below.Katherine Hunt is evaluating her debt safety ratio. Her monthly take-home pay is $3,160. Each month, she pays $350 for an auto loan, $90 on a personal line of credit, $80 on a department store charge card, and $105 on her bank credit card. Complete Worksheet 6.1 by listing Katherine's outstanding debts, and then calculate her debt safety ratio. Round the answer to 1 decimal place. Enter debt safety ratio as a percentage. % Given her current take-home pay, what is the maximum amount of monthly debt payments that Katherine can have if she wants her debt safety ratio to be 12.5 percent? Round the answer to the nearest dollar. $ Given her current monthly debt payment load, what would Katherine's take-home pay have to be if she wanted a 12.5 percent debt safety ratio? Round the answer to the nearest dollar. $You are a first-time homeowner and know you will only prequalify for an FHA loan. Your monthly gross income is $2,000. What is this minimum amount of recurring debt you are currently able to handle? (round to the nearest dollar) (DO NOT INCLUDE COMMAS AND S) Type your numeric answer and submit
- Carlos earns a gross income of $5,680 per month and applies for a mortgage with a monthly PITI of $1,249.60. Carlos has other financial obligations totaling $994.00 per month. If the lending ratio guidelines are as given in the table below. *table chart* What type of mortgage, if any, would Carlos qualify for? (Choose from below which option Carlos should qualify for.) (a): Carlos qualifies for an FHA mortgage under the lending guidelines, but not a conventional mortgage. (b): Carlos qualifies for a conventional mortgage under the lending guidelines, but not an FHA mortgage. (c): Carlos qualifies for both an FHA mortgage and a conventional mortgage under the lending guidelines. (d): Carlos qualifies for neither an FHA mortgage and a conventional mortgage under the lending guidelines.Ted Phillips has monthly take-home pay of $1,200; he makes payments of $450 a month on his outstanding consumer credit (excluding the mortgage on his home). How would you characterize Ted's debt burden?You are a loan officer at the West Elm Savings and Loan. Mr. and Mrs. Brady are in your office to apply for a mortgage loan on a house they want to buy. The house has a market value of $170,000. Your bank requires 1 5 of the market value as a down payment. (a) What is the amount (in $) of the down payment? $ (b) What is the amount (in $) of the mortgage for which the Bradys are applying? $ (c) Your bank offers the Bradys a 30 year mortgage with a rate of 5%. At that rate, the monthly payments for principal and interest on the loan will be $5.37 for every $1,000 financed. What is the amount (in $) of the principal and interest portion of the Bradys' monthly payment? $ (d) What is the total amount (in $) of interest that will be paid over the life of the loan? $ (e) Your bank also requires that the monthly mortgage payments include property tax and homeowners insurance payments. If the property tax is $1,710 per year and the property insurance is…
- You are a loan officer at the West Elm Savings and Loan. Mr. and Mrs. Brady are in your office to apply for a mortgage loan on a house they want to buy. The house has a market value of $170,000. Your bank requires 1 5 of the market value as a down payment. (a) What is the amount (in $) of the down payment? $ (b) What is the amount (in $) of the mortgage for which the Bradys are applying? $ (c) Your bank offers the Bradys a 30 year mortgage with a rate of 5%. At that rate, the monthly payments for principal and interest on the loan will be $5.37 for every $1,000 financed. What is the amount (in $) of the principal and interest portion of the Bradys' monthly payment? $ (d) What is the total amount (in $) of interest that will be paid over the life of the loan? $ (e) Your bank also requires that the monthly mortgage payments include property tax and homeowners insurance payments. If the property tax is $1,710 per year and the property insurance is $1,458 per…Chloe Young is evaluating her debt safety ratio. Her monthly take-home pay is $3,320. Each month, she pays $380 for an auto loan, $120 ona personal line of credit, $60 on a department store charge card, and $85 on her bank credit card. Complete Worksheet 6.1 by listing Chloe’s outstanding debts, and then calculate her debt safety ratio. Given her current take-home pay, what is the maximum amount of monthly debtpayments that Chloe can have if she wants her debt safety ratio to be 12.5 percent? Given her current monthly debt payment load, what would Chloe’s take-home pay have to be if she wanted a 12.5 percent debt safety ratio?Alyssa Clark is evaluating her debt safety ratio. Her monthlytake- home pay is $3,320. Each month, she pays $380 for an auto loan, $120 on a personal line of credit, $60 on a department store charge card, and $85 on her bank credit card. Complete Worksheet 6.1 by listing Alyssa’s outstanding debts, and then calculate her debt safety ratio. Given her current take-home pay, what is the maximum amount of monthly debt payments that Alyssa can have if she wants her debt safety ratio to be 12.5 percent? Given her current monthly debt payment load, what would Alyssa’s take-home pay have to be if she wanted a 12.5 percent debt safety ratio?