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2) Assume you are interested in purchasing a $350,000 house with the following characteristics: 80% Loan to Value Loan @ 4% interest (30yr, fully amortized)
2) Assume you are interested in purchasing a $350,000 house with the following characteristics: 80% Loan to Value Loan @ 4% interest (30yr, fully amortized) . Property taxes = 1.2% of purchase price per year Homeowners Insurance = $1,000/yr Homeowners Association Dues = $200/mo . Payment-to-Income Ratio = 28% . Total Obligations-to-Income Ratio = 35% A. How much do you have to earn to afford this house (assuming zero consumer debt) B. Will you still be able to afford the house if you have $300/mo in student debt payments and a $200/mo car payment
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