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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 76
Calculate the housing expense ratio and the total obligations ratio for the following mortgage applications.
You are a mortgage broker at Interamerican Bank. One of your clients, Bill Cramer, has submitted an application for a mortgage with a monthly PITI of $1,259. His other financial obligations total $654.50 per month. Bill earns a gross income of $4,890 per month.
a. What is his housing expense ratio?
b. What is his total obligations ratio?
c. According to the Lending Ratio Guidelines on page 468, for what type of mortgage would Bill qualify, if any?
d. If Bill decided to get a part-time job so that he could qualify for a conventional mortgage, how much additional monthly income would he need?
You are a mortgage broker at Interamerican Bank. One of your clients, Bill Cramer, has submitted an application for a mortgage with a monthly PITI of $1,259. His other financial obligations total $654.50 per month. Bill earns a gross income of $4,890 per month.
a. What is his housing expense ratio?
b. What is his total obligations ratio?
c. According to the Lending Ratio Guidelines on page 468, for what type of mortgage would Bill qualify, if any?
d. If Bill decided to get a part-time job so that he could qualify for a conventional mortgage, how much additional monthly income would he need?
Explanation
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Verified
Consider Bill Cramer's monthly gross inc...
Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
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