MT361 Foundations of Real Estate Practice Homework: Qualifying for a Mortgage- Purdue University Global
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In your Learning Activity you received some practice regarding the housing expense ratio and the debt-to-income ratio. In this assignment, you will apply these ratios to a scenario to qualify yourself for a mortgage.
Scenario: You have found a home you wish to purchase. The PITI (i.e., monthly payments) on the mortgage you have applied for is $1425.00 per month. You gross monthly income is $4,750.00 per month and your car payments are only $150 for the next 4 years since you paid the majority of the price of the car in cash, and you have no credit card debt. Additionally, you only have $10,000 to put down on the property.
Access the formulas for calculating the housing expense ratio and debt-to-income ratio.
1. Calculate your housing expense ratio. Then calculate the debt-to-income ratio.
2. Would you qualify for a conventional loan? Why or why not? Provide both ratios and your reasoning.
3. Explain how you would proceed.
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.
Attachment:- Determining-the-Ability-to-Pay-a-Mortgage.rar