Question
Susan has her hopes set on the purchase of a specific home and wants to know the maximum mortgage amount she would qualify for. The
Susan has her hopes set on the purchase of a specific home and wants to know the maximum mortgage amount she would qualify for.
The following are the details about her income and the house she has her eyes set on:
Her gross monthly income is $5020
Her monthly debt payments are $428
The monthly heat and property tax on the home is $522
The qualifying interest rate for the mortgage is 4.2% semi-annual interest and 25 year amortization.
Based on TDSR of 40% and GDSR of 30%, what is the largest mortgage she would be able to qualify for? Input the number to the nearest dollar with no minus or $ sign.
Answer:
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Financial Accounting An International Introduction
Authors: David Alexander
7th Edition
129229583X, 978-1292295831
