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Jim has an annual income of $240,000. Jim is looking to buy a house with monthly...

Jim has an annual income of $240,000. Jim is looking to buy a house with monthly property taxes of $1,000 and monthly homeowner s insurance of $200. Apple bank has a maximum front end DTI limit of 28%. Considering only the front end DTI limit, what is the most they will allow Jim to spend on a monthly mortgage payment?"

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Answer #1

Monthly Maximum Housing expenses = 28%*240000/12 = 5600

Maximum monthly mortgage = Monthly Maximum Housing expenses -Taxes-Insurance

= 5600-1000-200

= 4400

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