A family has a gross monthly income of $4,850. The family has a down payment of...

  

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A family has a gross monthly income of $4,850. The family has a down payment of $45,000. They want to buy a $215,000 home and take the mortgage over 25 years at 6.5%. Monthly property taxes on the house are estimated to be $300. Annual heating costs are $2640. Complete the following questions and the chart below. (8 marks) THIS FORMULA WILL HELP YOU DETERMINE THE PRICE OF THE HOME YOU CAN AFFORD: Gross Monthly Household Income Multiply by 32% (GDSR) Total Affordable household expenses SUBTRACT Monthly property taxes Monthly Heating Costs Half of the Condo Fees Monthly mortgage payment your household can afford DIVIDE by estimated interest rate factor Maximum amount of mortgage you can afford Add your cash down payment Your maximum affordable price Actual Mortgage Payment = interest rate factor x actual total mortgage x 0.32 Gross Debt Service Ratio = Actual Monthly Payment + Monthly Property Taxes + Monthly Heating x 100 Gross Monthly Income a) What is the maximum home price the family can afford rounded to the nearest thousand dollars? (1 mark) b) What is the actual monthly mortgage payment? (1 mark) c) Calculate the family's Gross Debt Service Ratio. (1 mark) A family has a gross monthly income of $4,850. The family has a down payment of $45,000. They want to buy a $215,000 home and take the mortgage over 25 years at 6.5%. Monthly property taxes on the house are estimated to be $300. Annual heating costs are $2640. Complete the following questions and the chart below. (8 marks) THIS FORMULA WILL HELP YOU DETERMINE THE PRICE OF THE HOME YOU CAN AFFORD: Gross Monthly Household Income Multiply by 32% (GDSR) Total Affordable household expenses SUBTRACT Monthly property taxes Monthly Heating Costs Half of the Condo Fees Monthly mortgage payment your household can afford DIVIDE by estimated interest rate factor Maximum amount of mortgage you can afford Add your cash down payment Your maximum affordable price Actual Mortgage Payment = interest rate factor x actual total mortgage x 0.32 Gross Debt Service Ratio = Actual Monthly Payment + Monthly Property Taxes + Monthly Heating x 100 Gross Monthly Income a) What is the maximum home price the family can afford rounded to the nearest thousand dollars? (1 mark) b) What is the actual monthly mortgage payment? (1 mark) c) Calculate the family's Gross Debt Service Ratio. (1 mark)

Answer rating: 100% (QA)

Here are the calculations a Gross Monthly Household Income 4850 32 o... View the full answer