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Suppose you take out a 20-year mortgage for a house that costs $397744. Assume the following: The annual interest rate on the mortgage is 5%.

Suppose you take out a 20-year mortgage for a house that costs $397744. Assume the following:

  • The annual interest rate on the mortgage is 5%.
  • The bank requires a minimumdown paymentof 17% 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 $68
  • Your other long-term debts require payments of $558 per month.

If you make the minimum down payment, what is the minimum gross monthly salary you must earn in order to satisfythe 28% rule and the 36% rulesimultaneously?

Round your answer to the nearest dollar.

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