Narrative 14-2
for Problems in This Section, Use Table 14-1

question 71

Short Answer

Narrative 14-2
For problems in this section, use Table 14-1 from your text to find monthly mortgage payments.
-Refer to Narrative in your text 14-2. Daniel earns a gross income of $3,590 per month and applies for a mortgage with a monthly PITI of $765.63. David has other financial obligations totaling $363.17 per month. If the lending ratio guidelines are as given in the table below, what type of mortgage, if any, would Daniel qualify for? $$\begin{array} { | l | l | l | } \hline \text { Mortgage Type } & \text { Housing Expense Ratio } & \text { Total Obligations Ratio } \\\hline \text { FHA } & 29 \% & 41 \% \\\hline \text { Conventional } & 28 \% & 36 \% \\\hline\end{array}$$

---

Definitions:

Enthusiasm

A strong excitement or energy about doing something or participating in something.

Demographic Trends

Patterns and changes in the statistical characteristics of populations over time, including age, race, gender, income, and education level.

People of Color

A term used to describe individuals from racial and ethnic groups that are not considered white, highlighting diversity and multicultural backgrounds.

African-Americans

An ethnic group in the United States with ancestors from Africa, particularly those whose ancestors were enslaved and brought to the US.