Will they get the home loan? You have a gross annual income of $175,000 and have been pre-approved for a 30-year mortgage loan at 3.375% as long as the back-end ratio does not exceed 36%. The house you want to buy costs $560,000, and you plan to make a down payment of 20%. Your monthly payment would be $1980.59. Your research shows that the semi-annual property taxes for this house are $3,450. You have been given a quote from your insurance company of a $1,290 annual premium. You currently have a $579 monthly car payment and your monthly credit card bills average $2,000.
Will they get the home loan? You have a gross annual income of $175,000 and have been pre-approved for a 30-year mortgage loan at 3.375% as long as the back-end ratio does not exceed 36%. The house you want to buy costs $560,000, and you plan to make a down payment of 20%. Your monthly payment would be $1980.59. Your research shows that the semi-annual property taxes for this house are $3,450. You have been given a quote from your insurance company of a $1,290 annual premium. You currently have a $579 monthly car payment and your monthly credit card bills average $2,000.
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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Concept explainers
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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Need the loan amount
Transcribed Image Text:Will they get the home loan?
You have a gross annual income of $175,000 and have been
pre-approved for a 30-year mortgage loan at 3.375% as long
as the back-end ratio does not exceed 36%. The house you
want to buy costs $560,000, and you plan to make a down
payment of 20%. Your monthly payment would be $1980.59.
Your research shows that the semi-annual property taxes for
this house are $3,450. You have been given a quote from your
insurance company of a $1,290 annual premium. You
currently have a S579 monthly car payment and your monthly
credit card bills average $2,000.
Previous
Expert Solution
Step 1
Back-End ratio shows proportion of monthly income used to pay off debt.
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