1. How much would you be willing to pay for a house each month? This includes any maintenance expenses (e.g., plumbing, gardening/landscaping, etc., and of course your mortgage payment). PLEASE DO NOT CALCULATE ANYTHING YET, rather, just use your feeling. a. What is the amount within this payment that you expect to allocate towards paying off your mortgage? b. Come up with a reasonable expectation of your annual salary 5 years later. Divide this number by 12 to get your expected monthly salary. How much is your expected monthly mortgage payment as a percentage of your monthly salary? Are you within the general rule of 30%? C. The ongoing mortgage rate for a 30YR fixed installment is about 3.168% APR. We'll us this rate. Note also that mortgage payments are made every month (i.e., 12 times a year). Given your answer in part a, what is the amount you can borrow under these loan terms? HINT: Solve for PV using your mortgage payments. d. In your Week 1 Assignment on goals, was one of your goals to save up a certain amount of cash? If so, let's use that as the down payment for a new house. If you did not list savings as a goal, try to come up with a number today. e. The sum of the amount you can borrow (part c) and the down payment (part d) is the house price you can afford. What is this number? 1. How much would you be willing to pay for a house each month? This includes any maintenance expenses (e.g., plumbing, gardening/landscaping, etc., and of course your mortgage payment). PLEASE DO NOT CALCULATE ANYTHING YET, rather, just use your feeling. a. What is the amount within this payment that you expect to allocate towards paying off your mortgage? b. Come up with a reasonable expectation of your annual salary 5 years later. Divide this number by 12 to get your expected monthly salary. How much is your expected monthly mortgage payment as a percentage of your monthly salary? Are you within the general rule of 30%? C. The ongoing mortgage rate for a 30YR fixed installment is about 3.168% APR. We'll us this rate. Note also that mortgage payments are made every month (i.e., 12 times a year). Given your answer in part a, what is the amount you can borrow under these loan terms? HINT: Solve for PV using your mortgage payments. d. In your Week 1 Assignment on goals, was one of your goals to save up a certain amount of cash? If so, let's use that as the down payment for a new house. If you did not list savings as a goal, try to come up with a number today. e. The sum of the amount you can borrow (part c) and the down payment (part d) is the house price you can afford. What is this number