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Ms. burke earns $32,000 per year and plans to buy a house. use the banker's rule to determine her maximum allowable mortgage.

a. $60,000
b. $70,000
c. $80,000
d. $90,000

User Asciitaxi
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2 Answers

1 vote

Answer:

80,000

Explanation:

EXPERT VERIFIED…

User Plasma
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4 votes
For the answer to the question above bankers right now are looking for a borrower to not spend more than 28-35% of their gross income for housing expenses. Income of $32,000 a year is $2,667 per month. At a presumed 32% rate the maximum allowable mortgage payment is $2,667 x 0.32 = $850 per month. If Ms. Burke has excellent credit, say FICO over 775 and virtually no debts, then $1,000 per month might still be possible.
User Ander
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