Brenda found out that reputable lenders use the 28/36 rule when determining mortgage qualification.Brenda currently grosses $6,000 per month.From this she pays a $200 car payment;a personal loan of $100 and a student loan payment of $90.Based on this information,would Brenda qualify for a mortgage?

Question

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The 28/36 rule states that a borrower's monthly mortgage payment, including principal, interest, taxes, and insurance should not exceed 28% of their gross monthly income, and their total monthly debt payments should not exceed 36% of their gross monthly income.

Brenda's total monthly debt payments are $390 ($200 car payment + $100 personal loan + $90 student loan).

To determine if Brenda is within the 28/36 rule, we can calculate her maximum allowable mortgage payment:

28% of $6,000 = $1,680
36% of $6,000 = $2,160 (this includes her monthly debt payments)

$2,160 - $390 = $1,770

Therefore, Brenda's maximum allowable monthly mortgage payment is $1,770. If she qualifies for a mortgage with a monthly payment of $1,770 or less, then she would be within the 28/36 rule and would qualify for a mortgage.

We don't have any information about Brenda's savings, credit score or other factors that could affect mortgage qualification, but based on the given information, Brenda's monthly debt payments are low enough that she could potentially qualify for a mortgage under the 28/36 rule.

Brenda Found Out That Reputable Lenders Use the 28/36 Rule