Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You new job in Texas pays you $ 1 2 0 , 0 0 0 per year and you realize condo prices in Dallas are

You new job in Texas pays you $120,000 per year and you realize condo prices in Dallas are reasonable compared to anywhere on the East Coast. As a result, you decide to try to buy a condo rather than rent an apartment. Your real estate agent urges you to get pre-qualified for the most mortgage you can and introduces you to her boyfriend who happens to be a mortgage broker.
He explains that you can devote up to 43% of your pre-tax income towards your total monthly payments. You identify your car payment of $350 per month, car insurance of $50 per month, student loan payments of $300 per month and budget that Condo fees will be $200 per month.
If 30 year fixed rate mortgages are yielding 7%, what is the most mortgage loan you can get?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Finance Directors Handbook

Authors: Glynis D Morris, Sonia McKay, Andrea Oates

5th Edition

1566768691, 978-1566768696

More Books

Students also viewed these Finance questions

Question

8. Explain the relationship between communication and context.

Answered: 1 week ago

Question

d. How were you expected to contribute to family life?

Answered: 1 week ago