Chapter $18$ Packet

$6$a$.$ Loan Eligibility $-$ Show your work

Britney and Barney Berceau are seeking a mortgage loan to buy their first home. Barney earns $$3,500$ per month as a chef. Britney's salary as a senior payroll accountant is $$49,360$ per year. Their lender's policy is to limit the monthly principal and interest payment to $28\%$ of the borrower's gross pay. What is the maximum monthly P & I payment amount for which Britney and Barney can qualify? Round to whole dollars.

Answer: $q,$

$6$b$.$ Loan Eligibilty $--$ Show your work

Pauline Pasteur is looking at a house that is priced at $$178,000.$ She plans on making a $$30,000$ down payment and feels that her absolute maximum monthly payment for principal and interest is $$1,200.$ Ms$.$ Pasteur seeks a $15-$year mortgage which she has seen advertised at $6\mathrm{.}25\%.$ Based on her required maximum monthly payment, can she afford this house?

Expected mortgage payment

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