The Delgados have a gross monthly income of $6000. Monthly payments on personal loans total $500. Their
Question:
The Delgados have a gross monthly income of $6000. Monthly payments on personal loans total $500. Their bank limits the gross debt service ratio at 33% and the total debt service ratio at 42%.
a. Rounded to the nearest $100, what is the maximum 25-year mortgage loan for which they can qualify on the basis of their income? Assume monthly heating costs of $200 and property taxes of $220 per month. Current mortgage rates are 6.8% compounded semiannually.
b. Rounded to the nearest $100, what minimum down payment must they have to qualify for the maximum conventional mortgage (80% loan-to-value ratio) on a new home?
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a GDS ratio must be 33 Let PMT represent the month...View the full answer
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Related Book For 
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
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