"Jim has an annual income of $240,000. Jim is looking to buy a house with monthly property taxes of $1000 and monthly ho...
"Jim has an annual income of $240,000. Jim is looking to buy a house with monthly property taxes of $1000 and monthly homeowner s insurance of $200. Jim has $1,500 in monthly student loan payments and an average monthly credit card bill of $1,000. Apple bank has a maximum front end DTI limit of 28% and a maximum back end DTI limit of 36%. Considering both the front end DTI limit and the back end DTI limit, what is the most they will allow Jim to spend on a monthly mortgage payment?"
Homework Answers
Using front end limit, monthly mortgage
payment=28%*240000/12-1000-200=4400
Using back end limit, monthly mortgage
payment=36%*240000/12-1000-200-1500-1000=3500
Maximum mortgage payment=3500
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"Jim has an annual income of $240,000. Jim is looking to buy a house with monthly property taxes of $1000 and monthly ho...
"Jim has an annual income of $240,000. Jim is looking to buy a house with monthly...
"Jim has an annual income of $240,000. Jim is looking to buy a house with monthly property taxes of $1000 and monthly homeowners insurance of $200. Jim has $1,500 in monthly student loan payments and an average monthly credit card bill of $1,000. Apple bank has a maximum front end DTI limit of 28% and a maximum back end DTI limit of 36%. Considering both the front end DTI limit and the back end DTI limit, what is the most...
Jim has an annual income of $240,000. Jim is looking to buy a house with monthly...
Jim has an annual income of $240,000. Jim is looking to buy a house with monthly property taxes of $1,000 and monthly homeowner s insurance of $200. Apple bank has a maximum front end DTI limit of 28%. Considering only the front end DTI limit, what is the most they will allow Jim to spend on a monthly mortgage payment?"
"Jim has an annual income of $240,000. Jim is looking to buy a house with monthly...
"Jim has an annual income of $240,000. Jim is looking to buy a house with monthly property taxes of $1,000 and monthly homeowners insurance of $200. Apple bank has a maximum front end DTI limit of 28%. Considering only the front end DTI limit, what is the most they will allow Jim to spend on a monthly mortgage payment?"
5. Jim has an annual income of $300,000 Jim is looking to buy a house with...
5. Jim has an annual income of $300,000 Jim is looking to buy a house with monthly property taxes of $140 and monthly homeowner's insurance of $70 Jim has $178 in monthly student loan payments. Apple bank has a maximum front end DTI limit of 28% and a maximum back end DTI limit of 36%. Given both limits, what is the most they will allow Jim to spend on a monthly mortgage payment? 6. Jim has an annual income of...
. Jim has an annual income of $300,000. Jim is looking to buy a house with...
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Fleda's Beauty Company has $200,000 of total assets and earns 20 percent interest and taxes on...
Fleda's Beauty Company has $200,000 of total assets and earns 20 percent interest and taxes on these assets. The ratio of total debts to total assets (or DR been set at 50 percent. The interest rate on short-term debt is 7 percent, while the interest rate on long-term debt is 10 percent. A conservative policy calls for only long-term debt with no short-term debt; an intermediate policy calls for 50 percent short-term debt and 50 percent long-term debt; and an...
And there was a buy-sell arrangement which laid out the conditions under which either shareholder could...
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and why?
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this is all the information given Personal Financial Planning Mini-Case Jeff and Mary Douglas, a couple...
this is all the information given
Personal Financial Planning Mini-Case Jeff and Mary Douglas, a couple in their mid-30s, have two children - Paul age 6 and Marcy age 7. The Douglas' do not have substantial assets and have not yet reached their peak earning years. Jeff is a general manager of a jewelry manufacturer in Providence, RI while Mary teaches at the local elementary school in the town of Tiverton, RI. The family needs both incomes to meet their...
"Jim has an annual income of $240,000. Jim is looking to buy a house with monthly property taxes of $1000 and monthly homeowners insurance of $200. Jim has $1,500 in monthly student loan payments and an average monthly credit card bill of $1,000. Apple bank has a maximum front end DTI limit of 28% and a maximum back end DTI limit of 36%. Considering both the front end DTI limit and the back end DTI limit, what is the most...
"Jim has an annual income of $240,000. Jim is looking to buy a house with monthly property taxes of $1,000 and monthly homeowners insurance of $200. Apple bank has a maximum front end DTI limit of 28%. Considering only the front end DTI limit, what is the most they will allow Jim to spend on a monthly mortgage payment?"
5. Jim has an annual income of $300,000 Jim is looking to buy a house with monthly property taxes of $140 and monthly homeowner's insurance of $70 Jim has $178 in monthly student loan payments. Apple bank has a maximum front end DTI limit of 28% and a maximum back end DTI limit of 36%. Given both limits, what is the most they will allow Jim to spend on a monthly mortgage payment? 6. Jim has an annual income of...
Fleda's Beauty Company has $200,000 of total assets and earns 20 percent interest and taxes on these assets. The ratio of total debts to total assets (or DR been set at 50 percent. The interest rate on short-term debt is 7 percent, while the interest rate on long-term debt is 10 percent. A conservative policy calls for only long-term debt with no short-term debt; an intermediate policy calls for 50 percent short-term debt and 50 percent long-term debt; and an...
And there was a buy-sell arrangement which laid out the
conditions under which either shareholder could buy out the other.
Paul knew that this offer would strengthen his financial
picture…but did he really want a partner?It was going to be a long
night.
read the case study above and answer this question
what would you do if you were Paul with regards to financing,
and why?
ntroductloh Paul McTaggart sat at his desk. Behind him, the computer screen flickered with...
Read below and answer, Why does a business that has profit of
$30,000 per year need a bank loan?
Jones Electrical Distribution After several years of rapid growth, in the spring of 2007 Jones Electrical Distribution anticipated a further substantial increase in sales. Despite good profits, the company had experienced a shortage of cash and had found it necessary to increase its borrowing from Metropolitan Bank-a local one- branch bank-to $250,000 in 2006. The maximum loan that Metropolitan would make...
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