Question
Suppose your gross household income is $72,000. Further suppose you can spend up to 40% of your gross income on housing expenses. Housing expenses include:
Suppose your gross household income is $72,000. Further suppose you can spend up to 40% of your gross income on housing expenses. Housing expenses include: the mortgage payment, private mortgage insurance (if applicable), property tax, property insurance, homeowners association (HOA) fees, and maintenance. For the purposes of this assignment, assume that housing expenses excluding the mortgage payment and mortgage insurance add up to $8,400 per year, or $700 per month.
You have identified a house you would like to buy, which you can buy for $400,000. Assume you will make a down payment of $20,000, which means you will borrow $380,0000. Use the quote provided below to answer the following questions.
| 30-yr FRM | |
| Rate | 2.7% |
| Points/ fees | $477 |
| APR | 3.12% |
| Monthly pmt. | $2,190.15 |
| PMI | $162 |
QUESTION Calculate the total monthly housing expenses and the total interest in dollars you will pay over the life of the loan.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
