SOLUTION: Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment, and to spend no more than 36% of one's

Question 1176401: Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment, and to spend no more than 36% of one's gross monthly income for one's total monthly debt. Suppose a family has a gross annual income of $45,600.

a. What is the maximum amount the family should spend each month on a mortgage payment?

b. What is the maximum amount the family should spend each month for total credit obligations?

c. If the family's monthly mortgage payment is 70% of the maximum they can afford, what is the maximum amount they should spend each month for all other debt?
Answer by MathLover1(20849) (Show Source): You can put this solution on YOUR website!

a. What is the maximum amount the family should spend each month on a mortgage payment?
% of one's gross monthly income
if a family has a gross annual income of $, gross monthly income is
$
then }% of one's gross monthly income is

b. What is the maximum amount the family should spend each month for total credit obligations?
should be max % of one's gross monthly income which is

c. If the family's monthly mortgage payment is % of the maximum they can afford, what is the maximum amount they should spend each month for all other debt?
monthly mortgage payment =is % then the maximum amount they should spend each month for all other debt is

deduct from total credit obligations
maximum amount they could spend each month for all other debts

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SOLUTION: Advice from most financial advisers states to spend no more than​ 28% of​ one's gross monthly income for one's mortgage​ payment, and to spend no more than​ 36% of​ one's

SOLUTION: Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment, and to spend no more than 36% of one's