Barrie and Inga Adlington are considering purchasing a vacation home in the United States on a lake because prices have dropped in recent years. The house might also serve as a retirement home once they retire in 6 years. The Adlingtons' net worth is $384,000 including their home worth about $264,000 on which they currently owe $44,000 for their first mortgage, with a $751 per month payment. Their outstanding debts in addition to their mortgage include $12,500 on one car loan ($259 monthly payment), $13,500 on a second car loan ($284 monthly payment), and a $25,500 second mortgage on their home taken out to help pay for their daughters' college expenses ($184 monthly payment). Their income is $120,000. 1. Calculate the Adlingtons' debt-to-income ratio. Round your answer to two decimal places.
Barrie and Inga Adlington are considering purchasing a vacation home in the United States on a lake because prices have dropped in recent years. The house might also serve as a retirement home once they retire in 6 years. The Adlingtons' net worth is $384,000 including their home worth about $264,000 on which they currently owe $44,000 for their first mortgage, with a $751 per month payment. Their outstanding debts in addition to their mortgage include $12,500 on one car loan ($259 monthly payment), $13,500 on a second car loan ($284 monthly payment), and a $25,500 second mortgage on their home taken out to help pay for their daughters' college expenses ($184 monthly payment). Their income is $120,000.
1. Calculate the Adlingtons' debt-to-income ratio. Round your answer to two decimal places.
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