Please answer all questions \"not just one\" with formulas. QUESTION 2 10 points
ID: 2799733 • Letter: P
Question
Please answer all questions "not just one" with formulas.
QUESTION 2 10 points Save Answer Jim has an annual income of $136,000. Apple bank has a maximum front end DTI limit of 26%, what is the most they will allow Jim to spend on monthly principal, interest, taxes and insurance? QUESTION 3 10 points Save Answer Jim has an annual income of $136,000. Jim is looking to buy a house with monthly property taxes of $140 and monthly homeowner's insurance of $70. Apple bank has a maximum front end DTI limit of 26%, what is the most they will allow Jim to spend on a monthly mortgage? QUESTION 4 10 points Save Answer Jim has an annual income of $136,000. Jim is looking to buy a house with monthly property taxes of $140 and monthly homeowner's insurance of $70. Jim has $1,500 in monthly student loan payments and an average monthly credit card bill of $500 Apple bank has a maximum back end DTI limit of 41%. Given the back end DTI constraint, what is the most they will allow Jim to spend on a monthly mortgage payment?Explanation / Answer
As per rules, I am answering the first 4 questions
Q2:
Monthly income = 136000/12
Maximum amount Jim will be allowed to spend on loans = 26%*136000/12 = $2946.67
Q3:
Monthly income = 136000/12
Maximum amount Jim will be allowed to spend on loans = 26%*136000/12 – 140-70 = $2946.67- 140 -70
= $2736.67
Q4:
Monthly income = 136000/12
Maximum amount Jim will be allowed to spend on loans = 41%*136000/12 – 140-70-1500-500
= $4646.67- 140 -70-2000
= $2436.67
Q5
Monthly income = 136000/12
Maximum amount Jim will be allowed to spend on loans using Back end limit = 41%*136000/12 – 140-70-1500-500
= $4646.67- 140 -70-2000
= $2436.67
Maximum amount Jim will be allowed to spend on loans using only Front end limits = 26%*136000/12 – 140-70 = $2946.67- 140 -70
= $2736.67
Maximum they will allow Jim tospend on a monthly mortgage payment= MIN[2436.67, 2736.67] =
$2436.67
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.