Which of the following would increase the amount that a person could afford to spend on a home?
A)lower financial obligations
B)increased interest rates
C)increased down payment
D)decreased family income
E)increased monthly living expenses

Question

Quizplus · Accepted Answer

Lowering financial obligations such as debt payments or monthly expenses increases the amount a person can afford to spend on a home by freeing up more of their income. Increased interest rates, decreased family income, and increased monthly living expenses would all have the opposite effect and decrease the amount a person can afford to spend. While an increased down payment could potentially increase the amount a person can afford to spend by reducing the amount of the mortgage loan, it is not as effective as lowering financial obligations.

Which of the Following Would Increase the Amount That a Person