ipl-logo

Maximum Mortgage Loans: A Case Study

260 Words2 Pages

As shown above, using a maximum ratio of 28% to measure the PITI to Monthly gross income my maximum mortgage loan calculated is showing $181,818.Lenders usually measure your ability to pay through the use of ratio by limiting your monthly housing cost, as measured by PITI, to 28% of your gross monthly (Keown,2007). Conversely, employing the use of the 36% rule, which says that your total debt payments should never add up to more than 36% of your gross (i.e. pre-tax) income. In practice, that means that for every pre-tax dollar you earn each month, you should dedicate no more than 36 cents to paying off your mortgage, student loans, credit card debt and so on (SmartAsset.com, n.d). My maximum mortgage loan level following the 36% rule is $ only

Show More
Related

  • Nt1310 Unit 1 Assignment 1 Loans

    452 Words  | 2 Pages

    According to your financial situation and your monthly income, you can fix the monthly installment. From this program, you won 't lose your property and get good credit score for your future life. Make your life easy and get relief from your several current debts. Debtips is the most comprehensive resource on Debt Consolidation Loan, Bankruptcy, Mortgage and Credit. It is just the right channel to make you finance literate and also helps in managing your personal finances.

    Read More

  • Efferson County Case Summary

    600 Words  | 3 Pages

    At the present, the balances owed are arrears $13,516.67 and interest $34,451.69. Mr. Bozeman’s

    Read More

  • Antonio S. Case Study

    539 Words  | 3 Pages

    Each month, they pay $736.68 for federal income tax, $432.31 for state income tax, $325.13 for Social Security, and $76.04 for medicare. Antonio S pay $262.20 for his retirement. In total for their whole deductions per month is $1,832.36, and their net monthly

    Read More

  • Nt1310 Unit 2 Case Analysis

    140 Words  | 1 Pages

    10 = Number of periods 2%= Interest rate per period 1. 21899= The corresponding value 1.21899 x 150,000 = 182,848.50= multiply The loan Future Value is: 182,848.50; Rounded: 182,849 Principal: 150,000 Rate: 4% divided by 2=2% Number of periods: 2x5= 10 150,000 (1 + .002) ^ 10 = 153027.145 or 153027.15 Rounded 153,027.15 – 150,000= 3,027.15 I=PRT= $200,000 x .006 x 28 = $33,600 236,468.44 - 200,000 =36,46 200,000divided by100

    Read More

  • Essay On San Diego Area Code 619

    1009 Words  | 5 Pages

    Additionally, the city is expecting job growth of 39% in the next ten years. The average household income in area code 619 and 858 is $65,000, which is higher than the average household income of $53,000 throughout the country. The top three occupations for residents in San Diego are health care and social assistance, professional, scientific, technical services, and retail trade, and 31% of the population makes over $100,000 a year. Notable Awards and Events San Diego took the #1 spot on the Forbes list of “Best Cities to Start a Business.” The San Diego area code is one of the cultural hubs of California so there are many annual events in the city that visitors shouldn’t miss.

    Read More

  • Judy Bottle Research Paper

    542 Words  | 3 Pages

    The family annual income is $77,000 a year. Her bills are as follows: utilities $300, phone bill,

    Read More

  • Dollarama Company Case

    990 Words  | 4 Pages

    The debt to ratio is a ratio that compares a firms total liabilities and shareholders’ equity. It shows the proportion of the amount of money invested by the business owners as well as external entities. Debt to Equity Ratio = Total Liabilities/Shareholders’ Equity = $80,994/$931,490

    Read More

  • Food Stamps Research Paper

    924 Words  | 4 Pages

    Gross Income $1,265.00 $1,705.00 $2,144.00 $2,584.00 $3,024.00 $3,464.00 Household Size 1 2 3 4 5 6

    Read More

  • The Influence Of Student Loan Debt

    767 Words  | 4 Pages

    Families, who have their own issues, now need to confront the challenges of concocting cash that they scarcely have all together for their child to get instruction at a college institution. Student loan debt is common and is anticipated for undergraduates to seek higher education subsequent to graduating from their high school. College tuition costs are soaring, and a majority of undergraduates experience issues paying for their educational costs. To pay for their college expenses, most students require loans and toward the end of four years, those wind up owing debtors. Student loan debt has an unremitting impression on the lives of those within its grasp, influencing the manner in which they make important life choices.

    Read More

  • Student Loans: The Rise Of Student Debt

    334 Words  | 2 Pages

    Student loans is the second highest source of debt of $2.1 trillion dollars in the U.S. economy right now. This student loan debt is not only affecting the entire economy as a whole. In America, people believe that earning at Bachelor’s degree is the key to success in order to be financially secure be set in life. However at the same time, the cost of tuition has skyrocketed, and the borrowing of loans rise with it. The rising of student loan and debt will reduce consumption, lower investing, lower the rate of home ownership, and overall make it difficult to sustain financial stability.

    Read More

  • Pell Grant Pros And Cons

    295 Words  | 2 Pages

    Students receiving federal financial aid are financially needy. 90 percent of students participating in the Pell Grant Program come from families with incomes below $40,000 annually

    Read More

  • Case Study Wells Fargo

    476 Words  | 2 Pages

    Wells Fargo’s “Gutless Leadership” Wells Fargo is one of the largest banks in the United States, with “…more than 8,600 locations [and] 13,000 ATMs” (Wells Fargo Today). Millions of Americans trust them with their finances. However, after a federal investigation, Wells Fargo has admitted to opening up to two million accounts without customers’ permission. While this had financial implications for many customers, this scandal most heavily affected Wells Fargo’s low-level employees.

    Read More

  • Effects Of Income Inequality In The United States

    1863 Words  | 8 Pages

    Income inequality had an enormous impact on the United States’ history with the Great Depression that occurred in 1929. The principal impact of income inequality is surely the poverty rate that increases in the United States because a lot of the income goes to the richest population. As explain in this paper there are a variety of different technics to calculate the inequality within a country, some methods are more reliable than others. The most commonly used method is the Gini coefficient, which can help to compare the level on inequality between countries. In order to reduce the inequality in the country, the government try to found some solutions.

    Read More

  • Essay On Student Debt Crisis

    178 Words  | 1 Pages

    The biggest problem resulting from the student debt crisis is you hear stories of new graduates who have to stay with their parents so they can cut back on costs in order to pay off their student loan. When you take out student loans to help pay for college, it’s easy to forget that that money will eventually have to be paid back. Student graduates can’t do many things due to these student loans such as buying a home, getting married, or having children. But for right now giving students more information about their debt may help students say no to loans. Borrowing less may make it harder for students to graduate if, for instance, they spend more time working and less time studying.

    Read More

  • Role Of Poverty In America Essay

    1117 Words  | 5 Pages

    In America, there is a goal called “The American Dream”. This goal consists of living a life of comfort no matter what life you were born into. Exact definitions vary between each person because it is based on an individual, however most, if not all, include the ability to reach mobility and achievement no matter what social class one was born into. Money is clearly important for survival and it does keep people happy. The question most people formulate, however, is if it is actually possible for one who was born into poverty to actually be able to live a comfortable adult life with a stable income.

    Read More

More about Maximum Mortgage Loans: A Case Study

Open Document