Scenario: You are a single 30 -vear old with a gross annual income of $30,000. You have been renting an apartment, but you are tired of the rutes set by your landlord. You would like a place that you are free to fix up the way you want it, You are considering both condominiums and single divelling homes and are locking at the pros and cons of owning each type of housing. You would like to begin the home-buying process as soon as possible. You have $25,000 saved for a down payment, much of which was recently inherited from your late great aunt, and your farnily is willing to give you an additional \$15,000. You are currently repaying a school loan, a car loan, and some credit card debt, Current interest rates with home lenders are averoging around 5.0% at this time. Given your financial condition above and the desire for a 30 - vear foxed-rate mortgape that requires a 20% down payment, use the 28% front-end ratio to identify the amount of the monthly payment necessary to cover the loan's principal, interest, taxes, and homeowners' insurance, as well as the gross annual income required to qualdy for the loan. the menthly payment and the lower number indicates the borroner's requited annual inkone. Given your frnancal situation and the table above, you should be able to qualfy for a home that costs between and If purchased, wour loun would recuire monthly payments of If you select a mortgege loan offer that reuires a doma payment of less than 20%, the fender will most likely. Given your financal condition above and the desire for a 30 vear fixed-rote mortgage that requires a 20% down payment, use the 28% front end ratio to idertify the amount of the monthly perment necessary to cover the loan's prencipol, interest, taxes, and homeowners' insurance, as well as the gross annual income required to qualify for the loan. A table that moy be used to facilitate this onalysis follows. Remember that for each home price-interest rate combination, the upper number reflects. the monthly payment and the lower number indicates the borrower's required annual income. Given your financial stuation and the table above, you should be able to qually for a home that costs between and if purchased, your toan would require manthly payments of If you sebet a mortgage loan offer that recuires a down poynent of less than 2046 , the lender will most likely require you to: the monthly payment and the lower number indicates the borrower's required annual income. Given your financal situation and the table above, you should be able to qualify for a home that costs between and If purchaied, your loan would require nionthly payments of If you select a mortgoge ban offer that requires a down pa 20%, the lender will most tikely require you to: Purchase a home warranty policy Find a cosigner for the kan
