As you are applying for your mortgage loan, you and the bank agree that your...
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As you are applying for your mortgage loan, you and the bank agree that your total mortgage payment will not exceed $1,640 for the loan payments and your Escrow payments, which include your property taxes, and your insurance payments. Your annual property taxes are $3,600 and your annual insurance bill is $480. The bank will agree to approve your loan for 30 years at 3.45% if you agreed to make a down payment of 5% and have your payment equal 37% of your gross monthly income.
Based upon this information:
What is your Gross Monthly Income that includes the Escrow amounts?
What must your annual salary be in order to cover your full mortgage payment obligations including the escrow amounts?
What is the amount of the Monthly Payment for Principal and Interest only?
What is the amount of the mortgage loan that the bank will approve?
What is the total cost that you can pay for the house?
If you make all loan payments as agreed for the entire period, what will be the total amount of interest that you will have paid at the end of the mortgage loan?
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