My Math Forum mortgage payment

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 April 26th, 2019, 05:03 PM #1 Member   Joined: Jan 2019 From: tornto Posts: 36 Thanks: 0 mortgage payment You and your partner have combined gross annual income of \$105000 your mortgage payment is \$875/month. Heating oil average \$165/month and property tax are \$2700 annually; other monthly expenses total approximately \\$1150. a) Calculate the GDS ratio and TDS ratio. b) You are considering moving to a larger home and taking on a bigger mortgage. Are you in a good financial position to do this? Explain. PLEASE HELP THANKS Last edited by skipjack; April 26th, 2019 at 11:36 PM.
 April 27th, 2019, 12:22 AM #2 Global Moderator   Joined: Dec 2006 Posts: 20,624 Thanks: 2076 (a) GDS = (12(875 + 165) + 2700)/105000 * 100% = 14.46% Most lenders would consider that indicates you are in a very good financial position to move to a larger home and take on a bigger mortgage if you want to. For the TDS, include the other monthly expenses in the calculation.
 May 4th, 2019, 04:52 PM #3 Member   Joined: Jan 2019 From: tornto Posts: 36 Thanks: 0 A) GDS = (12(875 + 165) + 2700)/105000 * 100% = 14.46% TDS= (12(875+165)+2700+1150) )/105000 *100%*100=15.55% B) I think my expenses is more than my income... so living within your means is safer. Please check my answers. Last edited by skipjack; May 4th, 2019 at 11:41 PM.
 May 4th, 2019, 11:46 PM #4 Global Moderator   Joined: Dec 2006 Posts: 20,624 Thanks: 2076 What expenses? The mortgage payment is only 10% of gross income and considerably less than "other expenses". Thanks from Denis

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