Jane’s gross monthly income is $3,300. She is applying for a mortgage loan that will have a $800 monthly mortgage payment (principal and interest). In addition, property taxes will be $200 per month, and homeowner’s insurance will be $50 per month. Jane’s other debt payments are $150 (car loan) and $100 (minimum payments on credit cards.) Will she qualify for a conventional mortgage loan if her lender requires the mortgage debt service ratio to be no more than 30% and the debt payment ratio to be no more than 40%? Hint: See Demonstration Problem 6.9.
Group of answer choices
Yes
No, her debt payment ratio is too high
No, her mortgage debt service ratio is too high
No, both ratios are too high
Jane’s gross monthly income is $3,300. She is applying for a mortgage loan that will have...
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%?
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) ...
In underwriting a new 30-year, monthly payment mortgage loan at 5% interest for Jackie, the lender requires that Jackie meet three ratios to be approved for the loan. First, the payment on her loan plus the monthly cost of homeowner's insurance of $200 plus monthly property taxes of $225 plus monthly home owner association fees of $100 can be no more than 28% of her gross monthly income. Second, the monthly total of the four items above plus her car...
Part II -Mortgage Refinance Suppose your friend April is considering to refinance her mortgage. She bought her house 60 months ago. The amount of loan equals 154,000. She paid cash to cover the 5% down payment plus all required closing costs (closing costs include application fee, appraisal fee, loan origination fees and other costs, usually about 3%-5% of the loan amount). Since she had a decent credit history and relatively stable income, her mortgage rate was 5.25% for 30 years...
Part II-Mortgage Refinance Suppose your friend April is considering to refinance her mortgage. She bought her bonge 60 months ago. The amount of loan equals 154,000. She paid cash to cover the 5% down payment plus all required closing costs closing costs include application fee, appraisal fee. loan origination fees and other costs, usually about 3%-5% of the loan amount). Since she had a decent credit history and relatively stable income, her mortgage rate was 5.25% for 30 years at...
Suppose your friend April is considering to refinance her mortgage. She bought her house 60 months ago. The amount of loan equals 154,00. She paid cash to cover the 5% down payment plus all required closing costs (closing costs include application fee, appraisal fee, loan origination fees and other costs, usually about 3%-5% of the loan amount). Since she had a decent credit history and relatively stable income, her mortgage rate was 5.25% for 30 years at the time of...
Suppose that you are considering a conventional, fixed-rate 30-year mortgage loan for $100,000. The lender quotes an APR of 4.71%, compounded monthly; mortgage payments would be monthly, beginning one month after the closing on your home purchase. What would be your monthly mortgage payment?
Question: Suppose your friend April is considering to refinance her mortgage. She bought her house 60 month... Suppose your friend April is considering to refinance her mortgage. She bought her house 60 months ago. The amount of loan equals 196,000. She paid cash to cover the 5% down payment plus all required closing costs (closing costs include application fee, appraisal fee, loan origination fees and other costs, usually about 3%-5% of the loan amount). Since she had a decent credit...
$225,000. The new mortgage will be for the an nit together earn $72,000 per year, David and Mary would like to buy a home for The new mortgage will be for the amount of $200,000 at 6.5% for 30 years for $1,264.14 per month. Annual property taxes are $1,800 and property insurance on the home will cost $1,200 per year. They have enough cash for the down payment and closing costs. a) 1. What is the maximum percentage of mortgage...
Can Josh and Mia Afford This Home Using the Monthly Income Loan Criterion? Next week, your friends Josh and Mia want to apply to the Fourth Global Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $155,000. Given your knowledge of personal finance, they've asked for your help in completing the Home Affordability Worksheet that follows. (Note: When completing the form, round each dollar amount to the nearest whole dollar.) To assist in...