a wants to buy a home and is applying for a conventional mortgage loan. Her gross monthly income is $6,200. She has 32 payments of $525 per month remaining on her car loan, and 19 payments of $215 per month remaining on her student loan. Her bank has upper limits of 36% for GDS and 43% for TDS. Allowing for property taxes of $400 per month and heating costs of $300 per month, what maximum monthly mortgage payment do the GDS and TDS limits permit?
a wants to buy a home and is applying for a conventional mortgage loan. Her gross monthly income is $6,200. She has 32 payments of $525 per month remaining on her car loan, and 19 payments of $215 per month remaining on her student loan. Her bank has upper limits of 36% for GDS and 43% for TDS. Allowing for property taxes of $400 per month and heating costs of $300 per month, what maximum monthly mortgage payment do the GDS and TDS limits permit?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Amelia wants to buy a home and is applying for a conventional mortgage loan. Her gross monthly income is $6,200. She has 32 payments of $525 per month remaining on her car loan, and 19 payments of $215 per month remaining on her student loan. Her bank has upper limits of 36% for GDS and 43% for TDS. Allowing for property taxes of $400 per month and heating costs of $300 per month, what maximum monthly mortgage payment do the GDS and TDS limits permit?
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