SOLUTION: If mortgage lending institutions apply the “30% rule” (monthly mortgage payment of
combined principal and interest cannot exceed 30% of borrower’s monthly take-home pay) to a borr
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Question 1087687: If mortgage lending institutions apply the “30% rule” (monthly mortgage payment of
combined principal and interest cannot exceed 30% of borrower’s monthly take-home pay) to a borrower with monthly take-home pay of $4280, what is the maximum monthly payment this borrower can handle?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
If mortgage lending institutions apply the “30% rule” (monthly mortgage payment of combined principal and interest cannot exceed 30% of borrower’s monthly take-home pay) to a borrower with monthly take-home pay of $4280, what is the maximum monthly payment this borrower can handle?
the monthly take home pay is 4280.
30% of 4280 = .3 * 4280 = 1284.
the maximum monthly payment on the mortgage should not exceed 1284.
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