posted by m on .
Stephen said that the ratio of his mortgage to the sales price of his house is 7 to 6. Is this reasonable? Explain your answer.
I said yes it is reasonable. Stephen would pay 7 dollars for every 6 he borrowed. We don't know the sales price or how long the mortgage is and we can only go with the information given. Is this right?
A mortgage does not include the interest. With that ratio, Stephen would have a $70,000 mortgage for a $60,000 house. Does that sound reasonable to you?