Question

please write it in excel form

What is your 28% Ratio given the following information:

You want to buy a home costing $350,000 with 3% down with a 3.7% rate on a 30 year loan.

Your Property Mortgage Insurance will cost $45 per month

Your Home Owners Insurance will cost $140 per month

Your taxes will $500 per month

Your monthly income is $8,500

Answer 1

The term 28/36 rule refers to the rule used to calculate the amount of debt an individual or household should assume. According to this rule, a household should spend a maximum of 28% of its gross monthly income on total housing expenses and no more than 36% on total debt service, including housing and other debt such as car loans and credit cards. Lenders often use this rule to assess whether to extend credit to borrowers.

Particulars	Amount
Gross Monthly Income	$8,500.00
28% of Gross Monthly Income, which van be spent as housing expense	$2,380.00
Mortgage Insurance	$      45.00
Home Owner Insurance	$    140.00
Home Loan EMI	$1,562.66
Total Housing Expenses	$1,747.66
28% Ratio (Total Housing Expenses/Gross Monthly Income)	20.56%
This is lower than 28% of the gross monthly income
Calculation of EMI
Cost of Home	$ 3,50,000
Down Payment	$    10,500
Amount of Loan	$ 3,39,500
Interest Rate (3.7%/12 months)	0.31%
Period (30 years x 12 months)	360
Home Loan EMI	₹ 1,562.66

Where, EMI = (339500*0.31%)/(1-(1+0.0031)^-360)