Question

Can someone please help with number 3 and 4 thank you

Answer 1

Explanation:

3) Purchase price of the home is $585000

Cash down payment is $ 175000

Amount to taken for loan

`= 585000-175000 = $410000`

Therefore, loan to value ratio will be

`= (loan amount)/(value)`

`=(410000)/(585000)`

On solving

`=(410)/(585)`

On simplifying

`=(82)/(117)`

The loan to value ratio will be
`82:117`

4) it is given that

Fixed monthly expences i.e. debt
`=$1836`

Total income per month
`=$4934`

Therefore debt to income ratio will be

`= (debt)/(income)`

`= (1836)/(4934)`

On simplifying we get

`=(918)/(2467)`

Therefore debt to income ratio will be

`918:2467`