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Suppose you take a 10-year mortgage for a house that costs $292,869. Assume the following: The annual interest rate on the mortgage is 3%. The
Suppose you take a 10-year mortgage for a house that costs $292,869. Assume the following:
- The annual interest rate on the mortgage is 3%.
- The bank requires a minimum down payment of 10% of the cost of the house.
- The annual property tax is 1.5% of the cost of the house.
- The annual homeowner's insurance is $802.
- The monthly PMI is $90.
- Your other long-term debts require payments of $1,690 per month.
If you make the minimum down payment, what is the minimum gross monthly salary you must earn in order to satisfy the 36% rule?
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