Question

Using the standard 28/36 guidelines, if the maximum monthly mortgage payment allowed for someone applying for a home loan is $1,085, what is their annual income?

a.$36,167
b.$46,500
c.$65,100
d.$162,750

Answer 1

Answer:

Answer to this question is b.46500

Explanation:

According to 28/36 guidelines, a household shall not spend more than 28% of its monthly income on housing expenses.

Applying the above rule, the monthly income of a household shall be calculated as follows:

28% x household monthly income=1085$

household monthly income=1085/28%=3875

Annual household income=3875 x 12=46500

Answer to this question is b.46500

Answer 2

the answer is letter B. $46,500