suspicion 1
A few years ago, Michael Tucker purchased a home for $100,000. Today the home is worth $150,000. His remaining mortgage balance is $50,000. Assuming Michael can borrow up to 80 percent of the market value of his home, what is the maximum amount he can borrow?
80% of market value ($150,000×80%)$120,000
(-) outstanding mortgage loan$ 50,000
$ 70,000
? Maximum home law loan Michael can borrow is $ 70,000.
Question 2
Louise McIntyres periodic gross income is $2,000. Her employer withholds $400 in federal, state and local income taxes and $clx in Social Security taxes per month. Louise contributes $80 per month for her IRA. Her periodical credit payments for Visa, Master circuit card and Discover cards are $35, $30 and $20 respectively. Her monthly payment on an automobile loan is $285. What is Louises debt payments-to-income proportion? Is Louise living within her operator? Explain.
Louises debt payments-to-income ratio
=monthly Debt PaymentsNet Monthly Income ×100%
=$30+$35+$20+$285$2,000-$400-$160-$80 ×100%
=27.21%
? Louises debt payments to income ratio are $370 to $1360, or 27.21 percent. This ratio exceeds the recommended 20 percent figure, which shows that she does non living within her means and was overextended.
The debt payment has become a burden to her with her current nett income. Her maximum monthly loan and credit card payments should not be over $272, which is the 20 percent of her net income.
Question 3
Robert Thumme owns a $140,000 townhouse and still has an unpaid mortgage of $110,000. In appendix to his mortgage he has the following liabilities:
Visa| $565|
MasterCard| $480|
Discover Card| $395|
Education Loan| $920|
Personal Bank Loan| $800|
gondola Loan| $4,250|
Total| $7,410|
| |
Roberts net worth (not including his home) is slightly $21,000. This equity is in mutual funds, an automobile, a coin collection, furniture, other personal property. What is...If you want to get a full essay, magnitude it on our website: Orderessay
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