Suppose that in order to qualify for the loan, the total monthly amount paid cannot exceed 30 percent of monthly income. What is the minimum monthly income needed to qualify for the loan? What is the minimum annual income needed? (Note: This is a simplified minimum income requirement calculation, for the purposes of this project, as it does not take into account other costs such as insurance or other loans or assets currently held.)
The total monthly amount paid is 632.72
Total Monthly Amount Paid = K = $ 632.72 and Loan Eligibility: Total Monthly Amount Paid < = 30 % of Monthly Income
Therefore, Minimum Monthly Income Required = 632.72 / 0.3 = $ 2109.067
Minimum Annual Income Required = 2109.067 x 12 = $ 25308.8
Suppose that in order to qualify for the loan, the total monthly amount paid cannot exceed...
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You have $50,000 for down payment. Your monthly gross income is $5,000. Your monthly car loan payment is $300. You also need to pay $400 every month for property taxes and home insurance. The bank has a lending guideline for mortgage loan that total debt service (TDS) ratio cannot exceed 44% of monthly gross income. How much can you borrow from a 25-year conventional mortgage with an effective annual rate of 6%? ____ A) $205,770 B) $232,810 C) $279,160 D) ...
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