Lesson 6 Feb 25 2010

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Lesson 6 Feb 25 2010

  1. 1. What can I afford??
  2. 2. What are the most significant monthly expenses  related to owning a home?  1. Mortgage 2. Property Taxes 3. Heating costs
  3. 3. Gross Debt Service Ratio A general rule regarding how much of your  household income should go towards  household expenses.  Generally, house expenses should not  exceed 32% of your gross income. 
  4. 4. monthly mortgage payment + monthly property taxes + heating x 100                                                          Gross monthly income
  5. 5. Jeyson and Rochel have a gross monthly income of  $5680. Calculate their total affordable household  expenses.  $1817.60
  6. 6. If Jeyson and Rochel will pay $173.00 in property  tax, and $217.00 in heating costs what is their  maximum allowable mortgage payment?  $1427.60
  7. 7. If the best mortgage rate Jeyson and Rochel can  http://www.edu.gov.mb.ca/k12/assess/archives/cm_wt_rp_08.pdf get is 6.5%, for 25 years what is the largest  mortgage they can afford?  Use the chart in your resource book. 
  8. 8. If Jeyson and Rochel have a downpayment of $30  000 to purchase their home what is the maximum  price they can afford? 
  9. 9. Last assignment for this unit,  Assignment 6, ques. 1 ­ 5 Aren't you happy you're not taking Pre­Cal

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