That calculated monthly expense should include all housing costs (such as insurance, property taxes, etc), let’s estimate this means they would have around $950 a month for their mortgage payment and they have poor credit so qualify for a loan with an APR of 5.481%. What size 30 year home mortgage loan could they pay off with a monthly payment of $950?

That calculated monthly expense should include all housing costs (such as insurance, property taxes, etc), let’s estimate this means they would have around $950 a month for their mortgage payment and they have poor credit so qualify for a loan with an APR of 5.481%. What size 30 year home mortgage loan could they pay off with a monthly payment of $950?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter5: Making Automobile And Housing Decisions

Section: Chapter Questions

Problem 8FPE

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Suppose you want to purchase a house. Your take-home pay is $2790 per month, and you wish to stay within the recommended guidelines for mortgage amounts by only spending 14 of your take-home pay on a house payment. You have $15,600 saved for a down payment and you can get an APR from your bank of 3.9% compounded monthly. What is the total cost of a house you could afford with a 30 -year mortgage? Round to the nearest cent, if necessary.
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Let’s assume instead they have great credit and qualify for a loan with an APR of 4.025%, what size home mortgage loan could they borrow that could be paid off in 30 years with these $950 monthly payments?
Let’s assume instead they have great credit and qualify for a loan with an APR of 4.025%, what size home mortgage loan could they borrow that could be paid off in 30 years with these $950 monthly payments? Having an annual income of 46,000 it is not 154926.39
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