Question
*Note please answer the whole question in it's entirety with full steps. Part 1- William has a total of $72,000 in savings that he would
*Note please answer the whole question in it's entirety with full steps.
Part 1- William has a total of $72,000 in savings that he would like to use as a down payment on a $425,000 house. He makes $99,250 a year in income. The monthly blended mortgage payments are $2099.73. Taxes are $1600 per year and heating is $90 per month. What is Williams GDS (rounded to one decimal place)? a) 23.4.% b) 28.1% c) 41.1% d) 45.8%
Part 2- . If the application was based on GDS ratio only, does William fall within the guidelines for most lenders? a) Yes b) No c) There are no guidelines for GDS. d) None of the above
Part 3- In addition to the information provided in Part 1 above, William has informed you that his other monthly obligations include $260 per month for credit cards, and $640 for car payments. William also pays $323 per month for car insurance, $99.50 per month for internet/telephone service, and makes parental support payments of $1,000.00 per month based on his divorce agreement. What is Williams TDS (rounded to one decimal place)? a) 51.1% b) 55.0% c) 56.2% d) 72.7%
Part 4- . If the application was based on TDS ratio only, does William fall within the guidelines for most lenders? a) Yes b) No c) There are no guidelines for GDS d) None of the above
Part 5- Based on the information provided in Part 2 above, what is Williams LTV (rounded to one decimal place)? a) 20.1% b) 79.9% c) 76.6% d) 83.1%
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