Financial Summary

Mortgage Factor

Formulas

Correct! Well done.

Randi the Realtor

Based on the traditional financial guideline you could spend $$349,413$ on a house which would mean a monthly mortgage payment of $$2,085.$

Ross

That's a bit more than we'd like to spend on housing. How much house could we afford if we stick to spending less than $20\%$ of our income on the house?

What is Jamie Lee's and Ross' monthly gross income?

$($Hint: refer to the Financial Summary as needed$)$

Our assets:

$-$Checking account: $$4,261$

$-$Savings account: $$54,343$

$-$Emergency fund savings account: $$24,343$

$-$IRA balance: $$24,343$

$-$Cars: $$11,737+$$$22,606$

Our incomes:

$-$Jamie Lee: $$68,685$ gross income $($ $$51,514$ net income after tax$)$

$-$Ross: $$49,343$ gross income $($ $$37,007$ net income after tax$)$

Our monthly expenses:

$-$Utilities: $$160$

$-$Food: $$325$

$-$Gas$/$Maintenance: $$275$

$-$Credit Card payment: $$0$

$-$Car loan payment: $$289$

$-$Entertainment: $$300$

We don't have any student loan or credit card balances. But we do have car loans that add up to $$8,000.$