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Suppose you take a 10-year mortgage for a house that costs $234,834. Assume the following: The...

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Accounting

Suppose you take a 10-year mortgage for a house that costs$234,834. Assume the following: The annual interest rate on themortgage is 3.3%. The bank requires a minimum down payment of 12%of the cost of the house. The annual property tax is 2% of the costof the house. The annual homeowner's insurance is $863. The monthlyPMI is $91. Your other long-term debts require payments of $1,589per month. If you make the minimum down payment, what is theminimum gross monthly salary you must earn in order to satisfy the36% rule? Round your answer to the nearest dollar.

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3.7 Ratings (719 Votes)
Cost of the house 234834 Downpayment 12 234834 12 28180 Loan balance 234834 28180 206654 Loan term 10 years with monthly payments So 10 12 120 payment periods Annual interest on loan 33 so monthly interest 003312 000275 Monthly Payment amount    See Answer
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