You are trying to buy a house. Your net monthly income is $2,634.37. The bank will...
Homework Answers
a: Maximum amount you can pay for the mprtgage = Net Income * 100/ (100-28)
= 2634.37*100/72
=$3658.85
b: Assuming a monthly gross income of $3658.85,
Less Monthly payment towards mortgage = 28% of above = 1024.48
Net Monthly Income = $ 2634.37
Hence the monthly payment can be afforded since it is equal to 28% of gross income.
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You
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