Robert Smith has monthly net income of $1,200. He has a house payment of $550 per...

Robert Smith has monthly net income of $1,200. He has a house payment of $550 per month, a car loan with payments of $250 per month, a Visa card with payments of $40 per month, and a credit card with a local department store with payments of $58 per month. What is Robert’s debt payments-to-income ratio?

Expert Solution

Debt payment to income ratio = (car payment + vis card payment + credit card payment)/net income

= (250 + 40 + 58)/1200

= .29

jeff jeffy answered 2 years ago

Claude is buying a house. He expects his budget to allow a monthly payment of $1250...

Claude is buying a house. He expects his budget to allow a monthly payment of $1250 on a 25-year mortgage with an interest rate of (6.8%,2). If Claude makes a 10 percent down payment, determine the most he can pay for the house.

Mr. Smith is purchasing a $ 120000 house. The down payment is 20 % of the...

Mr. Smith is purchasing a $ 120000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) a 20-year mortgage at a rate of 9 %. Find (i) the monthly payment: $ (ii) the total amount of interest paid: $ b) a 15-year mortgage at a rate of 9 %. Find (i) The monthly payment: $ (ii) the total amount of interest paid: $

Mr. Smith is purchasing a $ 160000 house. The down payment is 20 % of the...

Mr. Smith is purchasing a $ 160000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) a 20-year mortgage at a rate of 10 %. Find (i) the monthly payment: $ equation editor Equation Editor (ii) the total amount of interest paid: $ equation editor Equation Editor b) a 15-year mortgage at a rate of 10 %. Find (i) The monthly payment: $ equation editor Equation Editor...

Joe Smith, a young Engineer has planned to buy a house that they could afford. He...

Joe Smith, a young Engineer has planned to buy a house that they could afford. He and his spouse have been saving even before getting married and have put away about $65,000. The average price of a start up house or condo is about $550,000 here in Los Angeles, California. They have the following options to take a Jumbo loan; 1. ) 30-years fixed (% 20 down) · Note rate: 3.75 % · Cost: 0.0 Points 2. ) 15-years fixed...

The average electricity usage per month for a 2000 ft2 house is 550 kWh and the...

The average electricity usage per month for a 2000 ft2 house is 550 kWh and the standard deviation is 180 kWh. What is the probability that a household will use more than 750 kWh per month? It might help to sketch the distribution and put the important information on the graph. z=? p(x>750)=?

Naomi has a 15 year mortgage on her house. Her monthly principal and interest payment is...

Naomi has a 15 year mortgage on her house. Her monthly principal and interest payment is $1,373. Her annual insurance is $1,388 and her annual property taxes are $1,996. Find her adjusted monthly payment of principal, interest, taxes, and insurance (PITI). Please show step by step. Thank you

The adam smith family just purchased a 350,000 house with an 110,000 down payment and a...

The adam smith family just purchased a 350,000 house with an 110,000 down payment and a 30 year mortgage loan at 6.50% annually, with a monthly compounding. payments are made monthly. What is the remaining balance on the mortage after 15 years?

Shaun has enough money to put a 20% down payment on the new house he and...

Shaun has enough money to put a 20% down payment on the new house he and his family have picked out, but they will lose the emergency fund. Putting less than this down will increase his payments. What tradeoffs should he consider?

Mr. Jones has just bought a house for $250,000. He will make a down payment of...

Mr. Jones has just bought a house for $250,000. He will make a down payment of 5% on the house, and pay for the rest with a mortgage. The Bank Le Friendly offers 10-year mortgage loans at 13% APR compounded semi-annually, with monthly mortgage payments starting today. What is the amount of Mr. Jones’s monthly mortgage payment? A. $3,462.31 B. $3,498.84 C. $3,546.13 D. $3,647.40 E. $3,605.56

Jim has an annual income of $300,000. Jim is looking to buy a house with monthly...

Jim has an annual income of $300,000. Jim is looking to buy a house with monthly property taxes of $140 and monthly homeowner’s insurance of $70. Jim has $178 in monthly student loan payments. Apple bank has a maximum front end DTI limit of 28% and a maximum back end DTI limit of 36%. Both limits must be satisfied. Apple bank is offering a fully amortizing 30 year FRM at an annual rate of 4.5%, with monthly payments, compounded monthly....

Question