Question
You have just received an inheritance and are ready to buy an apartment for $520,000. You have a $120,000 deposit and legal fees. The interest
You have just received an inheritance and are ready to buy an apartment for $520,000. You have a $120,000 deposit and legal fees.
The interest rate on the loan is 3.2 % per year with monthly compounding for a 25 -year fixed rate mortgage
Legal fees are estimated to be 1% of the property value. You have an annual salary of $138,000 and the bank is willing to allow your monthly mortgage repayment to be equal to 26% of your monthly income.
- How much money will the bank loan you?
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Finance for Non Financial Managers
Authors: Pierre Bergeron
7th edition
176530835, 978-0176530839
