For the Following Mortgage Application, Calculate the Housing Expense Ratio

question 117

Short Answer

For the following mortgage application, calculate the housing expense ratio and the total expense ratio, rounding to the nearest tenth of a percent. $$\begin{array} { l l l l l l } & \text { Monthly } & \text { Monthly } & \text { Other Monthly } & \text { Housing } & \text { Total } \\& \text { Gross } & \text { (PITI) } & \text { Financial } & \text { Expense } & \text { Obligations } \\\text { Applicant } & \text { Income } & \text { Expense } & \text { Obligations } & \text { Ratio } & \text { Ratio } \\\text { Souder } & \$ 8,000 & \$ 1,840 & \$ 630 & &\end{array}$$

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Stock Market

A public market for the trading of company stock and derivatives at agreed prices.

Future Earnings

Projected profits or income a company expects to generate in future periods.

Prior Period Adjustment

Corrections of errors in previously published financial statements not related to the current period.

Income Statement

A report detailing a company’s financial activities, including income and expenditures, over a designated accounting timeframe.