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Your goal is a $250,000 home purchase and you would like to put down 20% or $50,000. You have decided that you will look for a home in the Bronx because it has the lowest median home prices in NYC. You found a two-bedroom co-op for $250,000; the co-op maintenance (HOA) is $978 per month (this fee includes the real estate taxes). You would like to achieve this in the next five years, so you need to save $10,000 per year. Currently you earn $40,000 per year and save $4800 a year. See this article for a sample budget and assume that instead of paying off $400 in debt each month, you instead apply that to savings. Looking at the sample budget, it seems that saving $10,000 may not be doable. What are your options to resolve this savings shortfall? Be as creative as you like, but your suggestions here and elsewhere must be grounded in reality. Now let's assume that you have in fact saved the downpayment. Use the mortgage calculator and assume that you will put down 20% on the apartment described above, and that homeowners insurance is $1000 annually (putting down 20% will mean that you will not pay any PMI (this is mortgage insurance that you need to pay if your down payment is less than 20%). What is your total monthly payment? If the bank requires that your annual payments (mortgage and co-op maintenance fees or HOA) be no more than 28% of your pretax income, what amount of income do you need? (Monthly payment x 12 months)/.28 = If the amount of required income is more than you are making in this scenario (the $40,000) what are your options

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