Contemporary Mathematics for Busin...

8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

Phil Armstrong earns a gross income of $5,355 per month. He has submitted an application for a fixed-rate mortgage with a monthly PITI of $1,492. Phil has other financial obligations totaling $625 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 Phil qualify, if any?

(a)

To determine

To calculate: The housing expense ratio when the monthly gross income is $5355, monthly PITI expense is $1492 and other monthly financial obligation is $625.

Explanation

Given Information:

The monthly gross income is $5355, monthly PITI expense is $1492 and other monthly financial obligation is $625.

Formula used:

The formula for the housing expense ratio is

Housing Expense Ratio=Monthly housing expense (PITI)Monthly gross income

Calculation:

Consider the provided values,

Monthly gross income=$5355Monthly PITI expense=$1492Other monthly financial obligation

(b)

To determine

To calculate: The total obligation ratio when the monthly gross income is $5355, monthly PITI expense is $1492 and other monthly financial obligation is $625.

(c)

To determine

The type of mortgage according to the lending ratio guidelines when the monthly gross income is $5355, monthly PITI expense is $1492 and other monthly financial obligation is $625.

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Chapter 14 Solutions

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Sect-14.I P-1TIE Sect-14.I P-2TIE Sect-14.I P-3TIE Sect-14.I P-4TIE Sect-14.I P-5TIE Sect-14.I P-1RE Sect-14.I P-2RE Sect-14.I P-3RE Sect-14.I P-4RE Sect-14.I P-5RE

Sect-14.I P-6RE Sect-14.I P-7RE Sect-14.I P-8RE Sect-14.I P-9RE Sect-14.I P-10RE Sect-14.I P-11RE Sect-14.I P-12RE Sect-14.I P-13RE Sect-14.I P-14RE Sect-14.I P-15RE Sect-14.I P-16RE Sect-14.I P-17RE Sect-14.I P-18RE Sect-14.I P-19RE Sect-14.I P-20RE Sect-14.I P-21RE Sect-14.I P-22RE Sect-14.II P-6TIE Sect-14.II P-7TIE Sect-14.II P-1RE Sect-14.II P-2RE Sect-14.II P-3RE Sect-14.II P-4RE Sect-14.II P-5RE Sect-14.II P-6RE Sect-14.II P-7RE Sect-14.II P-8RE Sect-14.II P-9RE Sect-14.II P-10RE Sect-14.II P-11RE Sect-14.II P-12RE Sect-14.II P-13RE Sect-14.II P-14RE Sect-14.II P-15RE Sect-14.II P-16RE Sect-14.II P-17RE Sect-14.II P-18RE Sect-14.II P-19RE Sect-14.II P-20RE Sect-14.II P-21RE Sect-14.II P-22RE Ch-14 P-1CR Ch-14 P-2CR Ch-14 P-3CR Ch-14 P-4CR Ch-14 P-5CR Ch-14 P-6CR Ch-14 P-7CR Ch-14 P-8CR Ch-14 P-9CR Ch-14 P-10CR Ch-14 P-11CR Ch-14 P-12CR Ch-14 P-13CR Ch-14 P-14CR Ch-14 P-1AT Ch-14 P-2AT Ch-14 P-3AT Ch-14 P-4AT Ch-14 P-5AT Ch-14 P-6AT Ch-14 P-7AT Ch-14 P-8AT Ch-14 P-9AT Ch-14 P-10AT Ch-14 P-11AT Ch-14 P-12AT Ch-14 P-13AT Ch-14 P-14AT Ch-14 P-15AT Ch-14 P-16AT Ch-14 P-17AT Ch-14 P-18AT Ch-14 P-19AT Ch-14 P-20AT Ch-14 P-21AT Ch-14 P-22AT

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Contemporary Mathematics for Busin...

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Chapter 14 Solutions

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