Can you please explain
this?Homework Answers
The two mortgage formulas and percentage caps used by banks to determine whether to lend to a borrower are :
- Gross debt service ratio should not be more than 32%. Gross debt service ratio = (monthly principal + monthly interest + monthly taxes + monthly insurance) / monthly gross income. That is, the ratio of (monthly loan payments + monthly property taxes + monthly property insurance) to monthly gross income should be less than 32%.
- Total debt service ratio should not be more than 40%. Total debt service ratio = (monthly principal + monthly interest + monthly taxes + monthly insurance + other debt payments) / monthly gross income. That is, the ratio of (monthly loan payments + monthly property taxes + monthly property insurance + other monthly debt payments) to monthly gross income should be less than 40%. Other debt payments include all other debt such as credit card, car loan, student loan etc.
The answer is (d)
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Can you please explain
this?
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couple can afford to spend on a house. Lender guidelines suggest
that the allowable monthly housing expenditure should be no more
than 28% of monthly gross income. From this, you must subtract
total nonmortgage housing expenses, which would include insurance
and property taxes and any other additional expenses. This defines
the affordable monthly mortgage payment. In addition, guidelines
also suggest that total affordable monthly debt payments,
including housing...
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please help me solve the following 6!! please only attempt if you
can solve ALL 6! thank you so much for your time, will rate! ?
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Hi, please help me to check and see if I am on the right track.
(Specifically for "requirement 3", I don't know if I choose the
correct one, each blank for requirement 3 contains 2 options, one
is the one that I chose, the other one is completely opposite than
the one that I selected. please let me know the answer for
requirement 3 and help me to check if I am doing correct for
requirement 1 and 2) Thank...
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commercial bank. Martin Manufacturing has been a customer of XYZ
Bank, your local bank rival. You want to increase your loan
portfolio with new customers, but you only want to lend to
customers that are likely to repay the bank in full and on-time.
Senior officers from Martin Manufacturing have approached you and
indicated that they are considering moving their banking
relationship away from XYZ Bank. They...
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answer it fully. Thank you!
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