Ans e)
To determine how much mortgage Ivana can afford, most financial
advisers agree that people should spend no more than 28 percent of
their gross monthly income on housing expenses and no more than 36
percent on total debt -- that includes housing as well as things
like student loans, car expenses, and credit card payments. The
28/36 percent rule is the tried-and-true home affordability rule
that establishes a baseline for what you can afford to pay every
month.
Mortgage affordability= Total Income*28
= $6000*28%
=$1680
Mortgage affordability= Total Debt*36%
=$2750*36%
$990
Mortgage he can
afford
Rate | 0.0025 | (3/100)*(1/12) |
Term | 50 | 25*2(Semi annually) |
Monthly payment | 990 |
= 990/50*.0025
= $7920
Maximum
Mortgage
Rate | 0.0025 |
Term | 50 |
Monthly payment | 1680 |
= 1680/50*.0025
= $13440
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