# Home Buyer Qualification Calculations

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

### If Joe has an income of \$65,000 per year, what monthly mortgage payment can he afford using an income and expense ratio of 28%?

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### 2. Which of the following best describes a situation where a buyer can make the mortgage payments but has little ability to spend on anything else?

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The purpose of the quiz and worksheet is to help you check your comprehension of the calculations for getting a loan to buy a house. Some topics you can expect to find on the quiz include the adjustable rate mortgage and the purchase price of homes.

## Quiz & Worksheet Goals

Working through the quiz and worksheet lets you see how much you know about:

• The income and expense ratio
• Finding the maximum monthly mortgage payment using the debt-to-income ratio
• How to increase the maximum price of a home if a person is coming up against the debt-to-income ratio limit
• The risk of using an adjustable rate mortgage to qualify for a larger loan

## Skills Practiced

• Reading comprehension - ensure that you draw the most important information from the lesson on qualifying home buyers
• Information recall - access the knowledge you have gained about a situation where a person can afford mortgage payments and not have money for anything else
• Knowledge application - use your knowledge to answer questions about finding monthly mortgage payments

As you complete the lesson named Home Buyer Qualification Calculations, you'll get to cover more topics like:

• What the income and expense ratio is
• Using the debt-to-income ratio
• How real estate agents qualify buyers
• Meaning of the term 'house poor'
Final Exam
Chapter Exam

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