Question

Using the standard 28/36 guidelines, what is the maximum mortgage payment allowed for someone with an annual salary of $60,750?
a.
$1,215.00
b.
$1,417.50
c.
$1,701.00
d.
$1,822.50

Answer 1

Monthly gross income = $60,750 / 12 = $5,062.50.
Maximum housing (mortgage) payment = 28% of monthly gross = 0.28 × $5,062.50 = $1,417.50.

Answer: b. $1,417.50