Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 5, Problem 4FPE
Summary Introduction
To calculate: The monthly amount that should be afford by the family R when their monthly payment is $3,500. Also, identify is there any variations if they were already making monthly installment loan payment that totals to $750 on two car loans.
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using the maximum ratios for a conventional mortgage, how big a monthly payment could one afford if theor gross income is $4,000? Would it make a difference if he already had a car payment of $750?
Using the maximum ratios for a conventional mortgage, how big a monthly payment could the Sanchez family afford if their gross (before-tax) monthly income amounted to $5,000? (Hint: Monthly mortgage payments cannot exceed 25 to 30 percent of the borrower's monthly gross income and the borrower's total monthly installment loan payments (including the mortgage payment) cannot exceed 33 percent to 38 percent of monthly gross income.)
$
Would it make any difference if they were already making monthly installment loan payments totaling $600 on two car loans?
Maximum mortgage payment they could make would be $ .
Suppose a family has a gross annual income of $43,200.
a. What is the maximum amount the family should spend each month on a mortgage payment?
b. What is the maximum amount the family should spend each month for total credit obligations?
c. If the family's monthly mortgage payment is 80%of the maximum they can afford, what is the maximum amount they should spend each month for all other debt?
Chapter 5 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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