Based on the GDS and TDS ratio guidelines, the Roses could have been approved for a...

  

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Based on the GDS and TDS ratio guidelines, the Roses could have been approved for a more expensive homn and gotten an even larger mortgage when they initially applied two years ago. Assume the following: a 25%, downpayment requirement, a 25 year amortization, and a 6.5% APR, monthly expenses of $310 for property taxes, 560 for home insurance and $240 for utilities (heating), RRSP and Auto loan payment of S600. Following are the Mortgage Payment Factors (principal and interest factom per 51,000 of loan amount) Interest 25 Yeors 20 Yeurs 15 Year Rate 4.00 273% 4.41 341 675 3.00% 4.00 3.25% 4.06 7.03 4.99 7.14 S.13 3.91 7.36 4.00% 6.00 7.30 4.25% S.40 4.17 7.30 4.5% 3.53 6.30 7.40 4.75% 5.67 6.44 775 3.00% 5.02 6.57 7.88 5.25% 5.96 6.71 8.01 5.5% 6.10 6.04 8.14 Calculate the ranges for the naximum monthly mortgage payment, the maximum mortgage amount and the maximum home purchase price that Johnny and Moira could have been approved for prior to their prognancy based on the standard GDS and TDS ratio guidelines? Use the table to structure your answer, using the method and format we learned in class: Based on the GDS and TDS ratio guidelines, the Roses could have been approved for a more expensive homn and gotten an even larger mortgage when they initially applied two years ago. Assume the following: a 25%, downpayment requirement, a 25 year amortization, and a 6.5% APR, monthly expenses of $310 for property taxes, 560 for home insurance and $240 for utilities (heating), RRSP and Auto loan payment of S600. Following are the Mortgage Payment Factors (principal and interest factom per 51,000 of loan amount) Interest 25 Yeors 20 Yeurs 15 Year Rate 4.00 273% 4.41 341 675 3.00% 4.00 3.25% 4.06 7.03 4.99 7.14 S.13 3.91 7.36 4.00% 6.00 7.30 4.25% S.40 4.17 7.30 4.5% 3.53 6.30 7.40 4.75% 5.67 6.44 775 3.00% 5.02 6.57 7.88 5.25% 5.96 6.71 8.01 5.5% 6.10 6.04 8.14 Calculate the ranges for the naximum monthly mortgage payment, the maximum mortgage amount and the maximum home purchase price that Johnny and Moira could have been approved for prior to their prognancy based on the standard GDS and TDS ratio guidelines? Use the table to structure your answer, using the method and format we learned in class: