You just landed a job making 52,000 per year. You have decided that you want to buy a house instead of continuing to rent, The Bank said that it can approve your loan for 30 years at 2.75% if you make a 5% down payment and have your mortgage payment 32% of your gross monthly income.

Answer the following questions :

a) What would be the required mortgage payments for the house?

b) What is the amount of the Loan that you qualify for?

c) What is the total cost of a House that you can afford ?

d) How much do you need for the down payment?