A home buyer makes $250,000 per year. It has $300,000 save for the downpayment plus enough to cover closing costs and any bank required savings. The bank uses one back ratio for approval of 48% on 80% LTV loans, which is what the borrower expects to put down. Taxes and insurance generally are $3,000 per month. The rate on a 30 year amortization loan would be 3%. The purchaser has a car loan of $500 per mont, student loans of $1,000 per month, credit cards of $300 per month. Given the down payment, ltv, and back ratio, how much can the purchaser spend on a house?

Answer rating: 100% (QA)

Solution Given a Gross Income 250000 per year b LTV80 c Period of mortgage 3... View the full answer