1) You are ready to buy a

1) You are ready to buy a

1) You are ready to buy a house and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of the loan value. You have an annual salary of $36,000 and the bank is willing to allow your monthly mortgage payment to be equal to 28% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (.5% per month) for a 30-year fixed rate loan.A) How much are your monthly payments?B) How much money will the bank lend you?C) How much can you offer for the house?

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