Note: The information presented here applies to questions 8, 9, 10, 11 and 12.
8)You want to purchase an apartment in Chelsea and have agreed to pay $825,000 for the unit. Based on the LTV ratio alone, what is the maximum amount that you can borrow to purchase this apartment if the mortgage lender requires a loan-to-value ratio less than or equal to 90%.
9)What is the amount of your down payment?
10)To qualify for this loan, the monthly payment plus the monthly share of insurance and property taxes can be no greater than 30% of your gross monthly income. The mortgage is 30-year fixed-payment mortgage with a 4.25% rate and property taxes, insurance, and common maintenance will cost $15,000 each year. Based on this criterion, what is the minimum annual income that will allow you to qualify for this mortgage?
11) To qualify for the loan, the monthly payment plus the monthly share of insurance and property taxes plus your monthly debts can be no greater than 40% of your gross monthly income. In addition to the monthly mortgage, insurance, and property tax payments, you must pay $600 a month in student loan payments and a minimum payment of $100 a month on your credit card. Based on this criterion, what is the minimum annual income that will allow you to satisfy the terms of this mortgage?
12) What must your annual income be to qualify for this mortgage?