Problem: You are a mortgage broker at your local bank. Your cousin submitted an application for a mortgage with a monthly PITI of $1,319. His financial other obligations total $744.50. Your cousin earns a gross income of $5,005. (a) What is your cousin's expense ratio? (b) What is his total obligations ratio? (c) According to the Lending Ratio Guidelines in your textbook (Chapter 14, section II), for type of mortgage would Bool qualify, if any? Explain. (d) If your cousin decided to get a part-time job so he can qualify for conventional mortgage, how much additional monthly income would he need? (Set up an equation and solve it.)

Problem: You are a mortgage broker at your local bank. Your cousin submitted an application for a mortgage with a monthly PITI of $1,319. His financial other obligations total $744.50. Your cousin earns a gross income of $5,005. (a) What is your cousin's expense ratio? (b) What is his total obligations ratio? (c) According to the Lending Ratio Guidelines in your textbook (Chapter 14, section II), for type of mortgage would Bool qualify, if any? Explain. (d) If your cousin decided to get a part-time job so he can qualify for conventional mortgage, how much additional monthly income would he need? (Set up an equation and solve it.)

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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Question

Problem: You are a mortgage broker at your local
bank. Your cousin submitted an application for a
mortgage with a monthly PITI of $1,319. His
financial other obligations total $744.50. Your
cousin earns a gross income of $5,005.
(a) What is your cousin's expense ratio?
(b) What is his total obligations ratio?
(c) According to the Lending Ratio Guidelines in
your textbook (Chapter 14, section II), for type of
mortgage would Bool qualify, if any? Explain.
(d) If your cousin decided to get a part-time job so
he can qualify for conventional mortgage, how
much additional monthly income would he need?
(Set up an equation and solve it.)

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Ronald and Samantha Brady recently had their condominium in Port Isaac appraised for $324,800. The balance on their existing first mortgage is $154,720. If their bank is willing to loan up to 75% of the appraised value, what is the amount (in $) of credit available to the Bradys on a home equity line of credit? $
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