In your Learning Activity you received some practice regarding the housing expense ratio and the debt-to-income ratio. In this assignment, you will apply these ratios to a scenario to qualify yourself for a mortgage.
Scenario: You have found a home you wish to purchase. The PITI (i.e., monthly payments) on the mortgage you have applied for is $1425.00 per month. You gross monthly income is $4,750.00 per month and your car payments are only $150 for the next 4 years since you paid the majority of the price of the car in cash, and you have no credit card debt. Additionally, you only have $10,000 to put down on the property.
Access the formulas for calculating the housing expense ratio and debt-to-income ratio
Calculate your housing expense ratio.
Then calculate the debt-to-income ratio.
Would you qualify for a conventional loan? Why or why not? Provide both ratios and your reasoning.
Explain how you would proceed.
Access the Unit 6 Assignment grading rubric.
Respond in a minimum of 250 words in a double-spaced Word document using 12-point, Times New Roman font. Submit your response to the Unit 6 Assignment Dropbox.