Answer:
The National Housing Act of 1937 established guidelines for maximum rents for low-income families. Originally the maximum rent threshold was set at 20%, however this increased to 30% in 1981 (and has remained at this level ever since). This figure is used to determine how much of your gross monthly income you should spend on rent.
The 28% Rule is used for determining how much of your gross monthly income should be used for a mortgage, however the FHA's threshold is a little higher at 31% of your gross monthly income on a mortgage.
Renting:
30% of $1,250 = 0.3 × 1250 = $375
Mortgage 28% Rule:
28% of $1,250 = 0.28 × 1250 = $350
Mortgage 31% FHA:
31% of $1,250 = 0.31 × 1250 = $387.50
Therefore, discounting the higher FHA's threshold, the maximum amount to budget for housing is:
- $375 (if renting)
- $350 (if buying)
5/2 because 5/2 is greater than 1, an improper fraction that does not take a piece of 1 but rather considers whole numbers as that origin
Answer:
Step-by-step explanation:
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Answer: 3f
Step-by-step explanation:
