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You are ready to buy a house, and you have $30,000 for a down payment and closing costs. Closing costs are estimated to be 5% of the loan value. You have an annual salary of $48,000, and the bank is willing
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You are ready to buy a house, and you have $30,000 for a down payment and closing costs. Closing costs are estimated to be 5% of the loan value. You have an annual salary of $48,000, and the bank is willing to allow your monthly mortgage payment to be equal to 25% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (50bps per month) for a 30 year fixed rate loan. How much can you offer for the house?

User Fabien Henon
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1527363 that’s the answer
User Ankit Sompura
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