Question
Jamie and Alice Newmark have a combined monthly gross income of $9,732 and monthly expenses totaling $2,831. They plan to buy a home with a
Jamie and Alice Newmark have a combined monthly gross income of $9,732 and monthly expenses totaling $2,831. They plan to buy a home with a mortgage whose monthly PITI will be $2,022.
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. (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.
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