You are getting ready to buy a house, but want to determine if you can afford it. You did a bit of research and found that the new lending guidelines require that your mortgage (including the principal, interest, taxes and insurance payments) must be less than 28% of your income. Additionally, your debt to income ratio must be less than 36%. This includes all your debt payments – loans, child support, credit cards, this new mortgage, etc.
You realize that these “guidelines” are actually percentages – ratios and rational numbers. Before asking a lender, you can do the math yourself to see if you qualify! Using the info below, determine if you can qualify for a mortgage on each of the properties listed below.
Use Excel’s PMT function to calculate the monthly mortgage payment (principal and interest).
Discuss at least 3 mathematical concepts that you used to complete this assignment.
Determine if you qualify for a mortgage on each of the properties, according the mortgage lending guidelines stated above.
Synthesize your process, research, and results in the Conclusion