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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

User Recker
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2 Answers

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Final answer:

The maximum mortgage payment allowed based on the 28/36 rule for someone with an annual salary of $60,750 is $1,417.50 per month.

Step-by-step explanation:

The standard 28/36 rule in mortgage lending states that a household should spend no more than 28% of its gross monthly income on total housing expenses, and no more than 36% on total debt service, which includes housing plus other debt such as car loans and credit card payments.

For someone with an annual salary of $60,750, we first find the monthly salary by dividing by 12:

Using the 28% rule for the housing expense:

Therefore, the maximum mortgage payment allowed for someone with an annual salary of $60,750, according to the standard 28/36 rule, is $1,417.50.

User Drasius
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5 votes

Answer: B

Step-by-step explanation:

The person above wrong

User Akelec
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