Qualify to borrow on the payment to income ratios

Assignment Help Financial Management

Reference no: EM131176529

Suppose your gross monthly income of $7,000. Assume that you expect property taxes and insurance to be $300 per month. In addition, assume you have automobile and student loan payments of $450 per month. If 30 year fixed rate mortgages have a current annual percentage rate of 7 percent, how much will you qualify to borrow on the payment to income ratios that mortgage lenders use as guidelines?

Reference no: EM131176529

Questions Cloud

Expecting interest rates to increase : You are expecting interest rates to increase. You sell a T-bill futures contract when the quoted price was 94.23. When the position was closed out, the interest rates increased and the price was 92.56. Assuming the same information as number 3 except..

Determine the profit or loss on the contract : You are expecting interest rates to decline. You purchase a T-bill futures contract when the quoted price was 95.34. When this position was closed out, the interest rates declined and the price of the T-bill was now 95.89. Determine the profit or los..

Computerized information about stock prices : Linkup Systems, which provides investors with computerized information about stock prices, is considering the establishment of a lockbox system with its bank. It has just implemented a new system which allows it to extend disbursement by 0.5 days.

Loan servicing-profits if financial guarantees are purchased : You establish a trust to securitize $1 billion in mortgages that paid 12.45 percent interest and the average interest rate on the tranches used was 10.16 percent. The financial guarantees on the loans cost 1.23 percent. How much money would you have ..

Qualify to borrow on the payment to income ratios : Suppose your gross monthly income of $7,000. Assume that you expect property taxes and insurance to be $300 per month. In addition, assume you have automobile and student loan payments of $450 per month. If 30 year fixed rate mortgages have a current..

About the sells equipment : During the current year, Hugo sells equipment for $150,000. The equipment cost $175,000 when placed in service two years ago, and $55,000 of depreciation deductions were allowed. The results of the sale are (how much gain and what rate is it taxed at..

Mortgage do you quality for given mortgage guidelines : Suppose your gross yearly income is $45,000. You are considering buying a house that presently has taxes and insurance of $2,640 per year. In addition, you presently have automobile and student loa payments of $400 per month. If the current 30 year f..

Find the price and P-E ratio of the firm : Castles in the Sand generates a rate of return of 20% on its investments and maintains a plowback ratio of .40. Its earnings this year will be $3 per share. Investors expect a 15% rate of return on the stock. Find the price and P/E ratio of the firm...

Evaluating an extra dividend versus share repurchase : Flashback Corporation is evaluating an extra dividend versus a share repurchase. In either case, $35,510 would be spent. Current earnings are $3.30 per share, and the stock currently sells for $78 per share. There are 5,300 shares outstanding.

User Account

All Pages