Suppose you take out a 20-year mortgage for a house that costs $286,205. Assume the following: The annual interest rate on the mortgage is 4%. The bank requires a minimum down payment of 13% at the time of the loan. The annual property tax is 1.9% of the cost of the house. The annual homeowner's insurance is 1.2% of the cost of the house. The monthly PMI is $59 Your other long-term debts require payments of $777 per month. If you make the minimum down payment, what is the minimum gross monthly salary you must earn in order to satisfy the 28% rule and the 36% rule simultaneously?
Suppose you take out a 20-year mortgage for a house that costs $286,205. Assume the following: The annual interest rate on the mortgage is 4%. The bank requires a minimum down payment of 13% at the time of the loan. The annual property tax is 1.9% of the cost of the house. The annual homeowner's insurance is 1.2% of the cost of the house. The monthly PMI is $59 Your other long-term debts require payments of $777 per month. If you make the minimum down payment, what is the minimum gross monthly salary you must earn in order to satisfy the 28% rule and the 36% rule simultaneously?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Suppose you take out a 20-year mortgage for a house that costs $286,205. Assume the following:
- The annual interest rate on the mortgage is 4%.
- The bank requires a minimum down payment of 13% at the time of the loan.
- The annual property tax is 1.9% of the cost of the house.
- The annual homeowner's insurance is 1.2% of the cost of the house.
- The monthly PMI is $59
- Your other long-term debts require payments of $777 per month.
If you make the minimum down payment, what is the minimum gross monthly salary you must earn in order to satisfy the 28% rule and the 36% rule simultaneously?
Round your answer to the nearest dollar.
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