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Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596 Exercise 70
Calculate the housing expense ratio and the total obligations ratio for the following mortgage applications.
Jamie and Alice Newmark have a combined monthly gross income of $9,702 and monthly expenses totaling $2,811. They plan to buy a home with a mortgage whose monthly PITI will be $2,002.
a. What is Jamie and Alice's combined housing expense ratio?
b. What is their total obligations ratio?
c. For what kind of mortgage can they qualify, if any?
d. (Optional challenge) By how much would they need to reduce their monthly expenses in order to qualify for an FHA mortgage?
Jamie and Alice Newmark have a combined monthly gross income of $9,702 and monthly expenses totaling $2,811. They plan to buy a home with a mortgage whose monthly PITI will be $2,002.
a. What is Jamie and Alice's combined housing expense ratio?
b. What is their total obligations ratio?
c. For what kind of mortgage can they qualify, if any?
d. (Optional challenge) By how much would they need to reduce their monthly expenses in order to qualify for an FHA mortgage?
Explanation
Verified
Verified
Consider Jamie's and Alice Newmark's mon...
Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
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