Gerri frederick is a first-time homeowner. her monthly net pay is $3,000. she estimates the following monthly housing expenses: $950.00 for her mortgage payment, $24.35 for her insurance premium, $85.75 for real estate taxes, $64.74 for electricity, $32.90 for telephone service, and $18.10 for water. are her monthly expenses within fha guidelines of 35% of net pay?

The answer is NO. Gerri's monthly expenses are not within FHA guidelines of 35% of net pay.

Step-by-step explanation:

Given net pay of Gerri = $3000

Her sub categories for monthly housing expenses are - $950.00 for her mortgage payment, $24.35 for her insurance premium, $85.75 for real estate taxes, $64.74 for electricity, $32.90 for telephone service, and $18.10 for water.

Totaling these values we get, = $1175.84

So, the answer is No, her monthly expenses are not within FHA guidelines of 35% of net pay.

35% of net pay is and this is less than $1175.84.