Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose you take out a 20-year mortgage for a house that costs $492.931. Assume the following: The annual interest rate on the mortgage is 5%.

image text in transcribed
Suppose you take out a 20-year mortgage for a house that costs $492.931. Assume the following: The annual interest rate on the mortgage is 5%. The bank requires a minimum down payment of 20% at the time of the loan. The annual property tax is 2.4% of the cost of the house. The annual homeowner's insurance is 1.3% of the cost of the house, The monthly PMI is $80 Your other long-term debts require payments of $941 per month. If you make the minimum down payment, what is the minimum gross monthly salary you must earn in order to satisfy the 28% rule and the 36% rule simultaneously? Round your answer to the nearest dollar

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

Explain the meaning of strategic substitutes.

Answered: 1 week ago