nburnett719
Dec 11, 2012, 01:42 PM
Chase Bank has a policy of setting a 15% to 20% margin for error when giving out mortgage loans to first-time homeowners. The Dow family is eying its first home. Chase Bank conducted a Cash Flow analysis that reveals about 6.5 K of monthly disposable income and 3.5 K in monthly outflows. The bank further estimates that the Dow family may need another $500 per month in emergency funds.
How much can the Dow Family afford to borrow towards their first home if the APR on their 30-year Mortgage is 6%. Assume that the mortgage loan is signed on January 1st 2012 and paid at the end of each month
Formula please
How much can the Dow Family afford to borrow towards their first home if the APR on their 30-year Mortgage is 6%. Assume that the mortgage loan is signed on January 1st 2012 and paid at the end of each month
Formula please