Calculate the housing expense ratio and the total obligations ratio for the following mortgage application.

Do not enter the percent symbol in your answers. Round your answers to two decimal places.

Applicant	Monthly Gross Income	Monthly PITI Expense	Other Monthly Financial Obligations	Housing Expense Ratio (%)	Total Obligations Ratio (%)
Renquest	$2,000	$445	$370	%	%

Ronald and Samantha Brady recently had their condominium in Port Isaac appraised for $327,100. The balance on their existing first mortgage is $145,480. If their bank is willing to loan up to 75% of the appraised value, what is the amount of credit available to the Bradys on a home equity line of credit?

$

Ransford and Alda Mariano own a home recently appraised for $419,500. The balance on their existing mortgage is $123,872. If their bank is willing to loan up to 75% of the appraised value, what is the amount of credit available to them?

$

Jamie and Alice Newmark have a combined monthly gross income of $9,702 and monthly expenses totaling $2,831. They plan to buy a home with a mortgage whose monthly PITI will be $2,002.

a. What is Jamie and Alice's combined housing expense ratio?

Do not enter the percent symbol in your answer. Round your answer to two decimal places.

%

b. What is their total obligations ratio?

Do not enter the percent symbol in your answer. Round your answer to two decimal places.

%

c. For what kind of mortgage can they qualify, if any?

Enter "FHA", "conventional", or "neither" (without the quotes).

d. (Challenge) By how much would they need to reduce their monthly expenses in order to qualify for an FHA mortgage? Round your answer to the nearest cent.

$