Question

Problem 12:

Sota and Akane are attempting to qualify for total mortgage financing of $2500, heating costs of $168 and they have a car loan payment of $500. What minimum gross monthly income will they need to qualify for both GDS ratio of 32% and TDS ratio of 40%?

Problem 13:

Emily has found a fixed rate mortgage for $480000 that is amortized over 25 years at 7% interest, compounded quarterly. How much would her payment be if she wanted to amortize the mortgage over 15 years instead of 25 years? (show calculations under both amortization periods)

Answer 1

12.

According to TDS ratio, minimum gross monthly income = (Total mortgage financing + heating costs + car loan payment) / TDS ratio

= ($2,500 + $168 + $500) / 40%

= $3,168 / 40%

= $7,920.

Minimum gross monthly income = $7,920.

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