Personal-finance homework Problem one Clients Ruth 45000 40000 78000 Jovan 35000 18000 90000 90000 Saving- Stocks, bonds Cash 401(k) Salary -yearly Bonus Yearly Student loan (mo) Car loan (mo Car lease (mo) Credit monthly min payment (mo) 87000 25000 210 450 320 0 1200 (4 payment left) 125 You are a mortgage banker. These clients come into your office and you profile them. The only reason they came to your office is We are meeting at which real estate agents and they want to know how much we are qualified to borrow. They want a letter from a mortgage banker stating the approximate value we can borrow. We are currently looking for a single family home in the price range between $600000-$650000. Can you help us." When solving for this, I want you to consider the following 1. what type of loan will you recommend, why 2. front-end and rear end ratio analysis 3. do they have the cash flow what is the maximum loan amount range that they can qualify for 5. what are their limiting factors Assumptions- Conforming 28 /36 Jumbo Average Real Estate Taxes $15,000 / year Average home owners insurance $2400/year 4.0% 30 year fixed 4.5% Interest Only 40/40 Personal-finance homework Problem one Clients Ruth 45000 40000 78000 Jovan 35000 18000 90000 90000 Saving- Stocks, bonds Cash 401(k) Salary -yearly Bonus Yearly Student loan (mo) Car loan (mo Car lease (mo) Credit monthly min payment (mo) 87000 25000 210 450 320 0 1200 (4 payment left) 125 You are a mortgage banker. These clients come into your office and you profile them. The only reason they came to your office is We are meeting at which real estate agents and they want to know how much we are qualified to borrow. They want a letter from a mortgage banker stating the approximate value we can borrow. We are currently looking for a single family home in the price range between $600000-$650000. Can you help us." When solving for this, I want you to consider the following 1. what type of loan will you recommend, why 2. front-end and rear end ratio analysis 3. do they have the cash flow what is the maximum loan amount range that they can qualify for 5. what are their limiting factors Assumptions- Conforming 28 /36 Jumbo Average Real Estate Taxes $15,000 / year Average home owners insurance $2400/year 4.0% 30 year fixed 4.5% Interest Only 40/40