Question
A growing family wishes to move to a larger house and the spotted one which they like. they have saved up and can make a down payment of $18000. John the husband,works full time with a gross monthy income of $3000 and the wife Junita works part time for a gross monthly income of $1200. The bank loan officer calculates a gross debt service ratip of 24.7%. Is this house purchase avisable? Are there other factors which could affect the avisability?
Answers
oobleck
You don't say what the purchase price is. But the maximum amount to be financed (price less $18K) must be less than
(3000+1200)/.247 = 17004
I'm sure you can think of other factors that might affect things positively or negatively.
(3000+1200)/.247 = 17004
I'm sure you can think of other factors that might affect things positively or negatively.