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You decide to plan for homeownership and your parents offer to help. They give you $10,000 per year for first 5 years stating one year
You decide to plan for homeownership and your parents offer to help. They give you $10,000 per year for first 5 years stating one year from now to use as a down payment. You deposit money into account earning 6 percent APR compounded monthly. In 5 years immediately after your past payment from your parents, you use money as down payment on 30 year mortgage also at 6 percent APR, compounded monthly. Your expected budget allows for monthly mortgage payments of $1450. What is your maximum price of the house you can afford to buy?
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