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The aveedas gross monthly income is 4300.00 . They have 18 remaining payments of 360.00 on...

The aveedas gross monthly income is 4300.00 . They have 18 remaining payments of 360.00 on a new car. They are applying for a 15 year, 71,000 mortgage at 6.5% . The taxes and insurance on the house are 290.00 per month. The bank will only approve a loan that has a total monthly mortgage payment of principal , interest , property taxes and homeowners insurance that is less than or equal to 28% of their adjusted monthly income .
Determine 28% if their adjusted monthly income . ( round to the nearest cent)

Solutions

Expert Solution

Monthly mortgage payment = $ 71,000 1 - [ 1 + ( 0.065/12) ] -180 ( 0.065/12)

Monthly mortgage payment = $ 618.49

Taxes and insurance = $ 290

Adjusted monthly gross income = $ 4300 - $ 360 - $ 618.49 - $ 290

Adjusted monthly gross income = $ 3,031.51

jeff jeffy answered 3 years ago
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