58. (-/3 Points] DETAILS TANFIN12 5.3.057. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER The Ability-to-Repay Rule, adopted

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58 3 Points Details Tanfin12 5 3 057 My Notes Ask Your Teacher Practice Another The Ability To Repay Rule Adopted 1 (59.47 KiB) Viewed 29 times

58. (-/3 Points] DETAILS TANFIN12 5.3.057. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER The Ability-to-Repay Rule, adopted by the Consumer Financial Protection Bureau in compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act, requires lenders to determine whether a consumer applying for a Qualified Mortgage can afford to repay the loan. One of the requirements is that the borrower's total monthly debt (including property taxes) cannot exceed 43% of the borrower's monthly pre-tax income. Suppose that the Foleys have applied for a $300,000 Qualified Mortgage with an interest rate of 4%/year compounded monthly and a term of 30 years. The property tax on the home they wish to purchase is $6000/year. If the Foleys' annual income is $72,000, will they qualify for the mortgage? (Round your answers to two decimal places.) The Foley's monthly payment would be $ Their monthly income is $ Thus, provided they do not have other significant debts, the Foley's qualify for the mortgage. Need Help? Read It Watch It Viewing Saved Work Revert to Last Response