Download - Lesson 6 Feb 25 2010
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What can I afford??
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What are the most significant monthly expenses related to owning a home?
1. Mortgage
2. Property Taxes3. Heating costs
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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.
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monthly mortgage payment + monthly property taxes + heating
Gross monthly income
x 100
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Jeyson and Rochel have a gross monthly income of $5680. Calculate their total affordable household expenses.
$1817.60
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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
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If the best mortgage rate Jeyson and Rochel can get is 6.5%, for 25 years what is the largest mortgage they can afford? Use the chart in your resource book.
http://www.edu.gov.mb.ca/k12/assess/archives/cm_wt_rp_08.pdf
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If Jeyson and Rochel have a downpayment of $30 000 to purchase their home what is the maximum price they can afford?
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Aren't you happy you're not taking PreCal
Last assignment for this unit, Assignment 6, ques. 1 5
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