The Delgados have a gross monthly income of $6,000. Monthly payments on personal loans total $500. Their bank limits the gross debt service ratio at 33% and the total debt service ratio at 42% a. Rounded to the nearest $100, what is the maximum 25-year mortgage loan for which they can qualify on the basis of their income? Assume monthly heating costs of $200 and property taxes of $220 per month. Current mortgage rates are 6.8% compounded semiannually. (Do not round the intermediate calculations.) Maximum b. Rounded to the nearest $100, what minimum down payment must they have to qualify for the maximum conventional mortgage (80% loan-to-value ratio) on a new home? (Do not round the intermediate calculations.) Minimum $
The Delgados have a gross monthly income of $6,000. Monthly payments on personal loans total $500. Their bank limits the gross debt service ratio at 33% and the total debt service ratio at 42% a. Rounded to the nearest $100, what is the maximum 25-year mortgage loan for which they can qualify on the basis of their income? Assume monthly heating costs of $200 and property taxes of $220 per month. Current mortgage rates are 6.8% compounded semiannually. (Do not round the intermediate calculations.) Maximum b. Rounded to the nearest $100, what minimum down payment must they have to qualify for the maximum conventional mortgage (80% loan-to-value ratio) on a new home? (Do not round the intermediate calculations.) Minimum $
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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Transcribed Image Text:The Delgados have a gross monthly income of $6,000. Monthly payments on personal loans total $500. Their bank limits the gross
debt service ratio at 33% and the total debt service ratio at 42%
a. Rounded to the nearest $100, what is the maximum 25-year mortgage loan for which they can qualify on the basis of their income?
Assume monthly heating costs of $200 and property taxes of $220 per month. Current mortgage rates are 6.8% compounded
semiannually. (Do not round the intermediate calculations.)
Maximum
$1
b. Rounded to the nearest $100, what minimum down payment must they have to qualify for the maximum conventional mortgage
(80% loan-to-value ratio) on a new home? (Do not round the intermediate calculations.)
Minimum
$1
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