Penny and Ernest want to purchase a new home for $250,000. Their combined income is $68,000, and they will make a down payment of $80,000. Taxes on the house are $1,800 per year and the heating cost is $1,300 annually. The house includes condo fees of $500. The couples other debt payments are $623 per month for their car loan and their student loan. In order to keep payments low, the mortgage will be amortized over 25 years. The interest rate on a 5-year mortgage term is 1.93%. What is their monthly mortgage payment?

Select one:

a.

$714.14

b.

$726.58

c.

$725.85

d.

$652.60

e.

$716.58

Question 5

Complete

Mark 1.00 out of 1.00

Flag question

56031078: Referring to question 4, what is Penny and Ernests gross debt service ratio (GDS)?

Category: Default for Quiz 4: Calculating Payment Frequency, GDSR & TDSR

Question text

Referring to question 4, what is Penny and Ernest's gross debt service ratio (GDS)?

Select one:

a.

19.83%

b.

31.39%

c.

18.50%

d.

21.57%

e.

24.02%

Question 6

Complete

Mark 0.00 out of 1.00

Flag question

56031073: Referring to question 4, if Penny and Ernst lose this deal and want to know the maximum amount of money they can borrow. Calculate the mortgage amount they will qualify for. Your banks TDSR ratio ...

Category: Default for Quiz 4: Calculating Payment Frequency, GDSR & TDSR

Question text

Referring to question 4, assume Penny and Ernest lose this deal and want to know the maximum amount of money they can borrow. If the bank's maximum TDS is 40%, what is the largest payment they can handle? Hint: Determine the maximum monthly mortgage payment using the TDS formula and the information provided in question 4.

Select one:

a.

$1,380.66

b.

$1,068.66

c.

$1,374.35

d.

$1,135.33

e.

$802.00

Question 7

Complete

Mark 0.00 out of 1.00

Flag question

56031075: Referring to question 4 and 6, what is the amount of the mortgage?

Category: Default for Quiz 4: Calculating Payment Frequency, GDSR & TDSR

Question text

Referring to questions 4 and 6, what would be the amount of the mortgage if they decide to make the maximum mortgage payment?

Select one:

a.

$327,163.04

b.

$254,393.75

c.

$329,777.61

d.

$190,915.53

e.

$167,028.59