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Rob Davis is thinking about building an addition to his home…

Rob Davis is thinking about building an addition to his home in Rio Linda. The house was recently appraised at $239,500, and the balance on his existing first mortgage is $89,950. If Rob’s bank is willing to loan 75% of the appraised value. What is the equity in the house?  

As a follow-up to the previous question, Yogi’s Construction…

As a follow-up to the previous question, Yogi’s Construction has a $100,000 line of credit at the Jellystone Bank. The annual percentage rate is the current prime rate plus 3%. The balance on October 1 was $22,500. On October 10, Yogi borrowed $15,000 to pay for a shipment of lumber and on October 20 he borrowed another $32,500 for equipment repairs. On October 25, Yogi made a $30,000 payment on the account. The billing cycle for October has 31 days. The current prime rate is 6%. b) _____________ What is Yogi’s new balance?

Farid Smith is the mortgage broker at Rivendell Bank. One of…

Farid Smith is the mortgage broker at Rivendell Bank. One of his clients, Shelly Jones, has submitted an application for a mortgage with a monthly PITI of $1,692. His other financial obligations total $896.50 per month. Tom earns a gross income of $5,425 per month. (round answer to nearest tenth of a percent) What is his total obligations ratio?   Lending Expense GuidelinesMortgage Type            Home Expense Ratio             Total Obligations RatioFHA                                           29%                                         41%Conventional                             28%                                         36%