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3 years ago

Buying a Vacation Home

Business

1 answer:

Liono4ka [1.6K]3 years ago

4 0

The debt to income ratio is 86 percent. This is high so the family should not buy a house.

<h3>The total debt that is owed by this family </h3>

First mortgage = $43,000

Outstanding debts = $12,200

Car loan = $13,700

Second mortgage =$25,700

The total debt that this family is owing is given as

$43,000+ $12,200+$13,700+$25,700

= 94600 dollars

The total income that this family makes is given as $110,000.

The debt to income ratio would be

94600/$110,000.

= 0.86

Therefore the debt to income ratio that this family has is 86%.

Given that their debt to income ratio is high, it is advisable that the family has to stay away from purchasing a new house.

Read more on debt and income ratio here:brainly.com/question/24814852

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