Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Calculate the maximum payments based on GDS, TDS ratios, maximum borrowing capacity and maximum purchase price that a couple can afford for the dream
Calculate the maximum payments based on GDS, TDS ratios, maximum borrowing capacity and maximum purchase price that a couple can afford for the dream house. FILL OUT THE TABLE. GDS ratio 32% TDS ratio 42% Available down payment $20,000 Borrower's income: $45,000 Spouse's income: $30,000 Municipal taxes: $2,400 School taxes: $600 Annual heating cost: $1,440 Mortgage interest and amortisation period : 5.0 % - 25 years Other debts: Car loan (monthly): $225 Credit Card (monthly): $250 Calculation: Show work Maximum Payment (GDS) (5 points) Maximum payment (TDS) (5 points) Maximum borrowing capacity (5 points) Maximum purchase capacity (5 points)
Step by Step Solution
★★★★★
3.40 Rating (153 Votes )
There are 3 Steps involved in it
Step: 1
Calculation Total Monthly Income Borrowers income Spouses income 12 45000 30000 12 6250 Total Recurr...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