The Delgados have a gross monthly income of $6,000. Monthly payments on personal loans total $500. Their bank limits the gross debt service ratio at 33% and the total debt service ratio at 42%.
a) Rounded to the nearest $100, what is the maximum 25-year mortgage loan for which they can qualify on the basis of their income? Assume monthly heating costs of $200 and property taxes of $220 per month. Current mortgage rates are 4.8% compounded semi-annually.
b) Rounded to the nearest $100, what minimum down payment must they have to qualify for the maximum conventional mortgage on a new home?

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The Answer of The Delgados have a gross monthly income of $6,000. Monthly payments on personal loans total $500. Their bank limits the gross debt service ratio at 33% and the total debt service ratio at 42%.
a) Rounded to the nearest $100, what is the maximum 25-year mortgage loan for which they can qualify on the basis of their income? Assume monthly heating costs of $200 and property taxes of $220 per month. Current mortgage rates are 4.8% compounded semi-annually.
b) Rounded to the nearest $100, what minimum down payment must they have to qualify for the maximum conventional mortgage on a new home?

The Delgados Have a Gross Monthly Income of $6,000