Kenneth is applying for a mortgage. He has a monthly gross income of $4500. The home he would like to buy has monthly payments for a mortgage of $1350,a property tax of $120, a hazard insurance premium of $60, and a mortgage insurance premium of $60. Kenneth also ha other monthly debt totaling $500 per month. Would he qualify based on the FHA total fixed payments-to-income ratio? O No, his total fixed payments-to-income ratio is 35%. O Yes, his total fixed payments-to-income ratio is 46%.

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
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Kenneth is applying for a mortgage. He has a monthly gross income of $4500. The home he
would like to buy has monthly payments for a mortgage of $1350,a property tax of $120, a
hazard insurance premium of $60, and a mortgage insurance premium of $60. Kenneth also has
other monthly debt totaling $500 per month. Would he qualify based on the FHA total fixed
payments-to-income ratio?
O No, his total fixed payments-to-income ratio is 35%.
O Yes, his total fixed payments-to-income ratio is 46%.
O Yes, his total fixed payments-to-income ratio is 35%.
O No, his total fixed payments-to-income ratio is 46%.
Transcribed Image Text:Kenneth is applying for a mortgage. He has a monthly gross income of $4500. The home he would like to buy has monthly payments for a mortgage of $1350,a property tax of $120, a hazard insurance premium of $60, and a mortgage insurance premium of $60. Kenneth also has other monthly debt totaling $500 per month. Would he qualify based on the FHA total fixed payments-to-income ratio? O No, his total fixed payments-to-income ratio is 35%. O Yes, his total fixed payments-to-income ratio is 46%. O Yes, his total fixed payments-to-income ratio is 35%. O No, his total fixed payments-to-income ratio is 46%.
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