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You want to buy $1.5million house now using the home mortgage financing plan from KBB Bank. The house price is expected to grow 2% annually
You want to buy $1.5million house now using the home mortgage financing plan from KBB Bank. The house price is expected to grow 2% annually for next 32 years. After 32 years you are going to retire and to sell the house. The proceed from the sale of the house will be used to support retirement living expenditure for 32 years. The annual interest rate is assumed to be 4% a year and unchanged. What will be your annual mortgage payment to KBB Bank and your monthly retirement spending?
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