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

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Jim has an annual income of $240,000. Jim is looking to buy a house with monthly property taxes of $1000 and monthly homeown

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Answer 1

Answer #1

Using front end limit, monthly mortgage payment=28%*240000/12-1000-200=4400
Using back end limit, monthly mortgage payment=36%*240000/12-1000-200-1500-1000=3500

Maximum mortgage payment=3500

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Answer 2

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