Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A couple wants to buy their first home. They have monthly gross pay of $5,000 per month. They also have a credit card balance of
A couple wants to buy their first home. They have monthly gross pay of $5,000 per month. They also have a credit card balance of $2,000.00 and they make the minimum 5% monthly payment. They have a car payment of $305.00 per month. They have saved a down payment of $18,000 and they have saved closing costs funds of $8,000 as well. The term of the loan is 30 years and the bank is offering a rate of 4.25% Annual property taxes are approximately $2,400.00 and a homeowners insurance policy is approximately $480.00 annually Considering that the bank's lending guidelines are 28% of gross pay for a housing payment (PTI) and 36% of gross pay for all debt payments, what price should the couple pay for their home? A couple wants to buy their first home. They have monthly gross pay of $5,000 per month. They also have a credit card balance of $2,000.00 and they make the minimum 5% monthly payment. They have a car payment of $305.00 per month. They have saved a down payment of $18,000 and they have saved closing costs funds of $8,000 as well. The term of the loan is 30 years and the bank is offering a rate of 4.25% Annual property taxes are approximately $2,400.00 and a homeowners insurance policy is approximately $480.00 annually Considering that the bank's lending guidelines are 28% of gross pay for a housing payment (PTI) and 36% of gross pay for all debt payments, what price should the couple pay for their home
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started