Question
Mortgage affordability. Bonnie and Jeremy have an annual income of $130,000 and want to buy a home. Currently, mortgage loan rates are at 3.0 percent.
Mortgage affordability. Bonnie and Jeremy have an annual income of $130,000 and want to buy a home. Currently, mortgage loan rates are at 3.0 percent. They want to take out a mortgage for 30 years. Real estate taxes are estimated to be $7,400 per year for homes similar to what they would like to buy, and homeowners insurance would be about $1,020 per year.
Using a 28 percent front end ratio, what are the total monthly expenditures for which they would qualify?
| Monthly gross income x 0.28 |
|
| Monthly real estate taxes | (-) |
| Monthly homeowners insurance | (-) |
| Qualified monthly mortgage payment (without taxes and insurance) | (=) |
Using a 36 percent back end ratio, what monthly mortgage payment could they afford given that they have the following monthly payments: automobile loan payment of $234, student loan payment of $278, and credit card payments of $342?
| Monthly gross income x 0.36 |
|
| Monthly car loan payment | (-) |
| Monthly student loan payment | (-) |
| Monthly credit card payment | (-) |
| Qualified monthly mortgage payment (including taxes and insurance) | (=) |
| Monthly real estate taxes | (-) |
| Monthly homeowners insurance | (-) |
| Qualified monthly mortgage payment (without taxes and insurance) | (=) |
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Audit Of Tax Regularity And Efficiency
Authors: Mohamed Aziz Boussaid
1st Edition
6206215865, 978-6206215868
