Business, 18.11.2019 21:31 Buttercream16

Mortgage affordability seth and alexandra moore of elk grove village, illinois have an annual income of $120,000 and want to buy a home. currently, mortgage rates are 6.0 percent. the moores want to take out a mortgage for 30 years. real estate taxes are estimated to be $5,400 per year for homes similar to what they would like to buy, and homeowner's insurance would be about $1,260 per year. a. using a 28 percent front-end ratio, what are the total annual and monthly expenditures for which they would qualify? round your answers to the nearest dollar. b. total annual expenditures $ monthly expenditures $ using a 36 percent back-end ratio, what monthly mortgage payment (including taxes and insurance) could they afford given that they have an automobile loan payment of $460, a student loan payment of $300, and credit card payments of $230? (hint: subtract these amounts from the total monthly affordable payments for their income to determine the amount left over to spend on a mortgage.) round your answer to the nearest dollar. $ c. using a 36 percent back-end ratio, if the moores had zero debt, what monthly mortgage payment (including taxes and insurance) could they afford? round your answer to the nearest dollar. $

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Mortgage affordability seth and alexandra moore of elk grove village, illinois have an annual income...

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