Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are a conservative buyer and you want to get a quick assessment of how much home you can safely buy and are going to

You are a conservative buyer and you want to get a quick assessment of how much home you can "safely" buy and are going to use the 28/36 rule to make that assessment.You earn $70,000 per year gross, your credit card payments total $300 per month and your car payment is $275 per month.You have no other fixed obligations.The going rate for a 30-year fixed mortgage is 3.25% assuming you pay up to $2,000 in mortgage costs (which you will pay with cash).You also have enough saved in the bank to put 20% down on the home.If homeowner's insurance and property taxes have annual total costs equal estimated to be $3,300, 

what is the total value of the home that you can buy considering the information given above and applying the 28/36 rule.

Step by Step Solution

3.41 Rating (170 Votes )

There are 3 Steps involved in it

Step: 1

Monthly Income is 70000 12 583333 Maximum ... 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

Recommended Textbook for

Focus On Personal Finance

Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart

5th Edition

0077861744, 978-0077861742

More Books

Students also viewed these Finance questions

Question

Working with athletes who dope

Answered: 1 week ago

Question

What behaviour demonstrates where they are on this scale?

Answered: 1 week ago