Calculate the housing expense ratio and the total obligation ratio (in %) for the following mortgage...
Calculate the housing expense ratio and the total obligation ratio (in %) for the following mortgage applications. (Round your answers to two decimal places.)
| Applicant | Monthly Gross Income |
Monthly PITI Expense |
Other Monthly Financial Obligations |
Housing Expense Ratio (%) |
Total Obligations Ratio (%) |
|---|---|---|---|---|---|
| Martin | $3,300 | $805 | $840 | % | % |
Homework Answers
I have answered the question below
Please up vote for the same and thanks!!!
Do reach out in the comments for any queries
Answer:
Housing expense ratio = (Monthly PITI expenses
/ Monthly Gross Income) X 100
=> ($805 / $3300) X 100
=> 24.39 %
Total Obligations Ratio = [(Monthly PITI
expense+Other monthly financial obligations) / Monthly income) X
100
=> [($805+$840) / $3300] X100
=> ($1645 / $3300) X 100
=> 49.84 %
Add Answer to:
Calculate the housing expense ratio and the total obligation
ratio (in %) for the following mortgage...
Capital structure Kirsten Neal is interested in purchasing a new house given that mortgage rates are...
Capital structure Kirsten Neal is interested in purchasing a new house given that mortgage rates are low. Her bank has specific rules regarding an applicant's ability to meet the contractual payments associated with the requested debt. Kirsten must submit personal financial data for her income, expenses, and existing installment loan payments. The bank then calculates and compares certain ratios to predetermined allowable values to determine if it will make the requested loan. The requirements are as follows: (1) Monthly mortgage...
The equation below estimates the effect of race on the probability of mortgage denial, holding constant the payment-to-income ratio. Pr(deny 1P/I ratio, black) 2.25+ 2.75P/1 ratio+0.73black) (0.085)...
The equation below estimates the effect of race on the probability of mortgage denial, holding constant the payment-to-income ratio. Pr(deny 1P/I ratio, black) 2.25+ 2.75P/1 ratio+0.73black) (0.085) (0.16) (0.45) A black mortgage applicant has a P/I ratio of 0.39. What is the predicted probability that his application will be denied? The predicted probability that his application will be denied is 32.73 %. (Express your response as a percentage and round to two decimal places) Suppose that the applicant reduced this...
Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable hom...
Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. Use Exhibit 7-6. Exhibit 7-7. (Round your intermediate and final answers to the nearest whole dollar.) Monthly gross income Other debt (monthly payment) 15-year loan at Down payment to be made (percent of purchase price) Monthly estimate for property taxes and insurance $3,498 25e 6 percent 15 percent 180 Affordable monthly mortgage payment Affordable mortgage amount Affordable home purchase Exhibit...
Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price...
Estimate the affordable monthly mortgage payment, the affordable
mortgage amount, and the affordable home purchase price for the
following situation. (Refer to Exhibit 9-8 and Exhibit 9-9) (Round
time value factor to 2 decimal places, intermediate and final
answers to the nearest whole number.)
Monthly gross income
$
3,450
Down payment to be made (percent of purchase price)
20
Percent
Other debt (monthly payment)
$
220
Monthly estimate for property taxes and insurance
$
280
30-year loan
7.0
Percent
Affordable...
Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price...
Estimate the affordable monthly mortgage payment, the affordable
mortgage amount, and the affordable home purchase price for the
following situation. (Refer to Exhibit 9-8 and Exhibit 9-9)
(Round time value factor to 2 decimal places, intermediate
and final answers to the nearest whole dollar.)
Monthly gross income
$
4,700
Down payment to be made (percent of purchase
price)
20
percent
Other debt (monthly payment)
$
260
Monthly estimate for property taxes and
insurance
$
490
30-year loan
8.5...
Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the...
Narrative 14-1 For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. Suppose you earn a gross income of $2,730 per month and apply for a mortgage with a monthly PITI of $510.51. You have other financial obligations totaling $431.34 per month. (Use the ratio guidelines from your text) What type of mortgage, if any, would you qualify for?
Capital structure Kirsten Neal is interested in purchasing a new house given that mortgage rates are...
Capital structure Kirsten Neal is interested in purchasing a new house given that mortgage rates are low. Her bank has specific rules regarding an applicant's ability to meet the contractual payments associated with the requested debt. Kirsten must submit personal financial data for her income, expenses, and existing installment loan payments. The bank then calculates and compares certain ratios to predetermined allowable values to determine if it will make the requested loan. The requirements are as follows: (1) Monthly mortgage...
Robert Sampson owns a townhous has the following liabilities: ,000 and still has an unpaid mortgage...
Robert Sampson owns a townhous has the following liabilities: ,000 and still has an unpaid mortgage of $157,000. In addition to his mortgage, he Visa MasterCard Discover card Education loan Personal bank loan Auto loan Total $ 790 450 590 3,300 600 5,600 $11,330 Robert's net worth (not including his home) is about $46,000. This equity is in mutual funds, an automobile, a coin collection, furniture, and other personal property. a. What is Robert's debt-to-equity ratio? (Round your answer to...
Problem 9-2 Estimating a Monthly Mortgage Payment (L09-4) Estimate the affordable monthly mortgage payment, the affordable...
Problem 9-2 Estimating a Monthly Mortgage Payment (L09-4) Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. (Refer to Exhibit 9-8 and Exhibit 9-9) (Round time value factor to 2 decimal places, Intermediate and final answers to the nearest whole number.) Monthly gross income Down payment to be made (percent of purchase price) Other debt (monthly payment) Monthly estimate for property taxes and insurance 30-year loan $6,800 15 Percent...
Given the following, calculate the GDS ratio. All income and expense items are annual. Gross income...
Given the following, calculate the GDS ratio. All income and expense items are annual. Gross income $55,000 Bank account $1,000 Net income $38,000 Property taxes $3,600 Heating $4,800 Annual car payment $4,200 Credit card balance $2,500 Car loan balance $10,000 Student loan payments $2,400 Mortgage payments $15,600
Capital structure Kirsten Neal is interested in purchasing a new house given that mortgage rates are low. Her bank has specific rules regarding an applicant's ability to meet the contractual payments associated with the requested debt. Kirsten must submit personal financial data for her income, expenses, and existing installment loan payments. The bank then calculates and compares certain ratios to predetermined allowable values to determine if it will make the requested loan. The requirements are as follows: (1) Monthly mortgage...
The equation below estimates the effect of race on the probability of mortgage denial, holding constant the payment-to-income ratio. Pr(deny 1P/I ratio, black) 2.25+ 2.75P/1 ratio+0.73black) (0.085) (0.16) (0.45) A black mortgage applicant has a P/I ratio of 0.39. What is the predicted probability that his application will be denied? The predicted probability that his application will be denied is 32.73 %. (Express your response as a percentage and round to two decimal places) Suppose that the applicant reduced this...
Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. Use Exhibit 7-6. Exhibit 7-7. (Round your intermediate and final answers to the nearest whole dollar.) Monthly gross income Other debt (monthly payment) 15-year loan at Down payment to be made (percent of purchase price) Monthly estimate for property taxes and insurance $3,498 25e 6 percent 15 percent 180 Affordable monthly mortgage payment Affordable mortgage amount Affordable home purchase Exhibit...
Estimate the affordable monthly mortgage payment, the affordable
mortgage amount, and the affordable home purchase price for the
following situation. (Refer to Exhibit 9-8 and Exhibit 9-9) (Round
time value factor to 2 decimal places, intermediate and final
answers to the nearest whole number.)
Monthly gross income
$
3,450
Down payment to be made (percent of purchase price)
20
Percent
Other debt (monthly payment)
$
220
Monthly estimate for property taxes and insurance
$
280
30-year loan
7.0
Percent
Affordable...
Estimate the affordable monthly mortgage payment, the affordable
mortgage amount, and the affordable home purchase price for the
following situation. (Refer to Exhibit 9-8 and Exhibit 9-9)
(Round time value factor to 2 decimal places, intermediate
and final answers to the nearest whole dollar.)
Monthly gross income
$
4,700
Down payment to be made (percent of purchase
price)
20
percent
Other debt (monthly payment)
$
260
Monthly estimate for property taxes and
insurance
$
490
30-year loan
8.5...
Capital structure Kirsten Neal is interested in purchasing a new house given that mortgage rates are low. Her bank has specific rules regarding an applicant's ability to meet the contractual payments associated with the requested debt. Kirsten must submit personal financial data for her income, expenses, and existing installment loan payments. The bank then calculates and compares certain ratios to predetermined allowable values to determine if it will make the requested loan. The requirements are as follows: (1) Monthly mortgage...
Robert Sampson owns a townhous has the following liabilities: ,000 and still has an unpaid mortgage of $157,000. In addition to his mortgage, he Visa MasterCard Discover card Education loan Personal bank loan Auto loan Total $ 790 450 590 3,300 600 5,600 $11,330 Robert's net worth (not including his home) is about $46,000. This equity is in mutual funds, an automobile, a coin collection, furniture, and other personal property. a. What is Robert's debt-to-equity ratio? (Round your answer to...
Problem 9-2 Estimating a Monthly Mortgage Payment (L09-4) Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. (Refer to Exhibit 9-8 and Exhibit 9-9) (Round time value factor to 2 decimal places, Intermediate and final answers to the nearest whole number.) Monthly gross income Down payment to be made (percent of purchase price) Other debt (monthly payment) Monthly estimate for property taxes and insurance 30-year loan $6,800 15 Percent...
Most questions answered within 3 hours.
-
Given a regression sum of squares equal to 2373.59 and a total
sum of squares equal...
asked 10 minutes ago -
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 2 hours ago -
Name the following coordination compounds using systematic
nomenclature.
1. [Co(H2O)6]Cl2:
2. [Cr(NH3)6](NO3)3:
3. K4[Fe(CN)6]:
4. Na[Au(CN)4]:...
asked 1 hour ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 3 hours ago -
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 3 hours ago -
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 2 hours ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 3 hours ago -
Which of the following are common negotiation outcome
mistakes?
a. Leave money on the table b....
asked 3 hours ago -
Convert the following quantities:
a) 0.819 atm to torr b) 512 mmHg to bar c) 11.2...
asked 4 hours ago -
C ++ Implement cat command
The purpose of this assignment is to provide practice using the...
asked 4 hours ago -
we
convert sugars into another form of stored potential energy. This
is called?
asked 5 hours ago -
The manufacturers of Oriental Spice Sauce are concerned that the
sodium levels in their product vary...
asked 5 hours ago