Net Worth
An object that is sellable and holds a market value
What is an Asset?
Salary, Commission, and wages are all types of this
What is employment income?
The starting value at the beginning of a loan
What is present value?
Value at the end of a loan
What is future value?
Find maximum GDSR and TDSR based on income
What is the first step of affordability calculations?
An amount of money owed to a financial institution
What is a Liability?
Investment income, long-term disability, royalties, and rental income all require this in order to be used as income.
What is income verification?
Calculate future value using the following information:
PV - 3000
I - 14%
n - 12
T - 5
Annual Compounding
What is $6016.83?
N in TVM
What is number of periods?
39% and 44%
What are the maximum percentages for GDS and TDS respectively?
Utility Bills
What are expenses?
Housing liabilities, property taxes, and heat are the only variables considered in this calculation.
What is Gross Debt Servicing Ratio?
Calculate how much a regular monthly deposit of $20 will be in 10 years with 8% interest and monthly compounded.
What is $2,481.10?
I or R
What is interest?
Maximum TDSR - Heat - Taxes - Debt
What is the maximum housing liability calculation for TDS?
Mortgage
What is a liability?
Calculate the GDSR using the following information:
Housing liabilities - $1,200
Taxes & Heat - $250
Income - $3,200
What is 45.3%?
Calculate Payment using the following information if PV is a deposit and there is annual compounding:
PV - 100,000
FV - 200,000
n - 12
T - 10
I - 5%
What is $227.32?
I/Y
What is interest rate per period?
Which of the following cannot be used as income in affordability calculations?
A). Employment Income
B). Spousal Support
C). Royalties
D). AISH
What is D). AISH?
What is an asset?
Calculate TDSR using the following information:
Housing Liabilities - $1,200
Taxes and Heat - $250
Monthly Debt Payments - $345
Maximum revolving credit - $3,000
Income - $5,500
What is 34.3%?
Calculate length in years of repayment with the following information:
Monthly Payments and Annual compounding
PV - 10,000
I/Y - 5%
PMT - 200
What is 4.20 years?
C/Y
Calculate the maximum mortgage if an individual can afford $3,200/month in housing liabilities at a rate of 5.79% for 25 years with semi-annual compounding.
What is $510,059.82?