Question
Payment to income ratios Mortgage Payment (P&I)
Payment to income ratios Mortgage Payment (P&I) <= 25% of gross monthly income. P&I plus taxes plus insurance <= 28% of monthly gross income. P&I plus taxes, insurance and all other debt <= 33% of monthly gross income. Monthly gross income = $6,000. Taxes and insurance = $400 per month. All other debt = $200 per month. Interest rate on a thirty year mortgage loan is 4.5%. What is the maximum mortgage loan you can take out? Show all work!
- A. $296,042
- B. $255,191
- C. $272,358
- D. $331,567
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Financial Accounting Information For Decisions
Authors: John J. Wild
10th Edition
9781260705584
