Final answer:
Brandon's monthly take-home pay is $5,000.
The maximum amount he should plan to allot for a monthly mortgage payment is $1,250, which is 25% of his take-home pay.
It is important that his mortgage payment is not more than 25% of his monthly take-home pay to maintain financial stability.
Brandon's lack of debt and emergency fund are important as they provide financial security and flexibility during the house-saving process.
Step-by-step explanation:
Brandon's monthly take-home pay is $60,000 divided by 12, which is $5,000.
The maximum amount Brandon should plan to allot for a monthly mortgage payment is 25% of his monthly take-home pay. This means he should allocate a maximum of $5,000 x 0.25 = $1,250 for a monthly mortgage payment.
It is important that Brandon's monthly mortgage payment is not more than 25% of his monthly take-home pay to ensure that he has enough income left for other expenses. If the mortgage payment is too high, it may lead to financial strain and difficulty in meeting other financial obligations.
Brandon having no debt and an emergency fund of 3-6 months of expenses before saving for a house is important because it provides financial stability and security. Being debt-free reduces the monthly financial obligations, allowing for more flexibility in managing expenses. Having an emergency fund safeguards against unexpected financial emergencies, ensuring that Brandon can still cover his expenses and mortgage payments even during challenging times.