Suppose your gross monthly income is $5,000. Assume that property taxes, homeowners insurance, and mortgage insurance payments

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Suppose your gross monthly income is $5,000. Assume that property taxes, homeowner’s insurance, and mortgage insurance payments total $200 a month. In addition, assume you have automobile and student loan payments that total $400 a month. If 30-year fixed rate mortgages have a current annual percentage rate of 6 percent, how much do you qualify to borrow based on the payment-to-income ratios described in the chapter?

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Financial Institutions, Markets and Money

ISBN: 978-1119330363

12th edition

Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias

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