Maximum house you can afford. You have an income of $70,000 per year. You are applying for a 4.5%, 80% L TV, 30-year FRM. Property Taxes are 2.75% of the house value, and insurance is 0.85% of the house value. Your LTO are $525 per month. You will be qualified on a 43% back end ratio. What is the maximum house you can afford assuming you have enough saved to pay the costs at closing? If closing costs are 3.15% of the house value, how much money will you need to bring to closing?
Maximum house you can afford. You have an income of $70,000 per year. You are applying for a 4.5%, 80% L TV, 30-year FRM. Property Taxes are 2.75% of the house value, and insurance is 0.85% of the house value. Your LTO are $525 per month. You will be qualified on a 43% back end ratio. What is the maximum house you can afford assuming you have enough saved to pay the costs at closing? If closing costs are 3.15% of the house value, how much money will you need to bring to closing?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Maximum house you can afford. You have an income of $70,000 per year. You are applying
for a 4.5%, 80% L TV, 30-year FRM. Property Taxes are 2.75% of the house value, and
insurance is 0.85% of the house value. Your LTO are $525 per month. You will be qualified
on a 43% back end ratio. What is the maximum house you can afford assuming you have
enough saved to pay the costs at closing? If closing costs are 3.15% of the house value,
how much money will you need to bring to closing?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education