He wants to buy an apartment. His annual salary is $$60,000.$ The cost of housing is expensive in the city regardless of whether he rents or buys. His real estate broker is helping him look for both rentals and possible units for purchase. He finally found a rental, and a studio for purchase that is suitable and that he can afford. For the purchase, there are fixed$-$rate, and adjustable$-$rate mortgages available. He would be a first$-$time homebuyer if he decides to purchase.

$1.$ Based on the guidelines for the costs of housing, how much should he plan to spend on his housing each month?

$2.$ Given the facts, give $2$ reasons he should consider renting vs$.$ purchasing a unit. Explain

$($a$)$

$($b$)$

$3.$ Explain how each of the following types of mortgages work:

$($a$)$ Fixed rate:

$($b$)$ Adjustable

$4.$ If he decides to purchase, what would be the advantages for each type of mortgage he should consider given his circumstances? Explain

$($a$)$ Fixed rate:

$($b$)$ Adjustable rate:

$5.$ If he decides to purchase, what would be the disadvantages for each type of mortgage he should consider given his circumstances? Explain.

$($a$)$ Fixed rate:

$($b$)$ Adjustable rate:

$6.$ Under the ability to re$-$pay rule, is a photocopy of his pay stubs and bank statements acceptable documentation of his income for a mortgage lender?