Exercise You want to take out a 30-year FRM to purchase a $189,500 house in Spokan Annual mortgage rate: 4.5% Monthly payments are required 20% down payment Hazard insurance: $695 (per year; this is the WA avg) Spokane Home Prices & Estimated property tax: $5,000 (per year) - Calculated based on the average rate in Spokane County $189,500 Credit card obligations: $70 (per month) Auto loan obligation: $100 (per month) 1 ZILLOW HOME VALUE INDEX 12.9% 1-year change 7.0% 1-year forecast Dec 2016 Feb 2018 Jan 2019 Compute: 1) The payment-to-income ratio 2) The total obligations to income ratio The median home value in Spokane is $189,500. Spokane home values have gone up 12.9% over the past year and Zillow predicts they will rise 7.0% within the next year. The median list price per square foot in Spokane is $174, which is higher than the Spokane Metro average of $166. The median price of homes currently listed in Spokane is $180,850 while the median price of homes that sold is $193,300 Exercise You want to take out a 30-year FRM to purchase a $189,500 house in Spokan Annual mortgage rate: 4.5% Monthly payments are required 20% down payment Hazard insurance: $695 (per year; this is the WA avg) Spokane Home Prices & Estimated property tax: $5,000 (per year) - Calculated based on the average rate in Spokane County $189,500 Credit card obligations: $70 (per month) Auto loan obligation: $100 (per month) 1 ZILLOW HOME VALUE INDEX 12.9% 1-year change 7.0% 1-year forecast Dec 2016 Feb 2018 Jan 2019 Compute: 1) The payment-to-income ratio 2) The total obligations to income ratio The median home value in Spokane is $189,500. Spokane home values have gone up 12.9% over the past year and Zillow predicts they will rise 7.0% within the next year. The median list price per square foot in Spokane is $174, which is higher than the Spokane Metro average of $166. The median price of homes currently listed in Spokane is $180,850 while the median price of homes that sold is $193,300