Alysha’s decision is irresponsible. With a mortgage payment taking up 90% of her income, she will likely have difficulty making payments. It's generally recommended that no more than 30% of a person's income be spent on housing costs, which means Alysha's housing expenses (including the mortgage) would severely limit her ability to cover other essential expenses. This high debt-to-income ratio puts her at risk of financial strain and potential default on her mortgage.
Question Alysha’s monthly income is $1,500. She is currently renting an apartment for $750 a month. She wants to buy a house. The mortgage would be $1,350 a month. Analyze her decision and state why such a financial decision is responsible or irresponsible.(1 point) Responses Alysha’s decision is irresponsible. She should only buy a home if she can pay cash for it. Alysha’s decision is irresponsible. She should only buy a home if she can pay cash for it. Alysha’s decision is irresponsible. With a mortgage payment taking up 90% of her income, she will likely have difficulty making payments. Alysha’s decision is irresponsible. With a mortgage payment taking up 90% of her income, she will likely have difficulty making payments. Alysha’s decision is responsible. Owning a home will stabilize her finances when she no longer has to pay rent. Alysha’s decision is responsible. Owning a home will stabilize her finances when she no longer has to pay rent. Alysha’s decision is irresponsible. Her home may depreciate in value after she buys it.
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