A loan applicant has an annual gross income of $42,000. How much will a lender a
ID: 3198029 • Letter: A
Question
A loan applicant has an annual gross income of $42,000. How much will a lender allow the applicant to pay for monthly housing expense to qualify for a loan if the lender uses an income ratio of 32%?
$1,344
$1,000
$853
$1,120
A borrower has a monthly payment of $1,980 on a loan with a monthly constant of 6.45. What is the loan amount (to the nearest hundred)?
$354,800
$283,300
$198,000
$307,000
A borrower has a $770,000 interest-only loan @ 5.5% interest. What are the monthly interest payments?
$4,235
$1,855
$3,529
$3,111
Christy has monthly loan payments of $1,200. Her loan is for $210,000 @ 6.1% interest. How much of her first payment goes towards principal?
$132.50
$0
$205
$177.50
Explanation / Answer
A loan applicant has an annual gross income of $42,000. How much will a lender allow the applicant to pay for monthly housing expense to qualify for a loan if the lender uses an income ratio of 32%?
$1,344
$1,000
$853
$1,120
Answer is 1,120
42,000*32% = 13,440
13,440/12 = 1,120
A borrower has a $770,000 interest-only loan @ 5.5% interest. What are the monthly interest payments?
$4,235
$1,855
$3,529
$3,111
Answer is 3,529
770000*5.5% = 42,350/12 = 3,529
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