Question
1.Grace wants to purchase a home with a list price of $250,000; she has a $25,000 down payment. Her salary is $85,000 per year. Currently,
1.Grace wants to purchase a home with a list price of $250,000; she has a $25,000 down payment. Her salary is $85,000 per year. Currently, she has a $250 car payment and a student loan payment of $375. Her lender uses a housing expense ratio of 28% and a debt to income ratio of 37%. Her lender is offering her a 30 year fixed rate mortgage for 5%. The monthly insurance and property taxes are about $375. What is the maximum monthly mortgage payment the lender will allow Grace to make on her mortgage?
2.Mary and Carlos want to buy a $400,000 house. They have $50,000 for a down payment. Their lender is offering them a 30 year mortgage at 6.2%. What is their total mortgage payment (principal & interest + escrow)?
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A Survey of Mathematics with Applications
Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde
10th edition
134112105, 134112342, 9780134112343, 9780134112268, 134112261, 978-0134112107
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