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# find out how much of a monthly mortgage his wife and him can afford?

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1. Kanye and his wife, Kim, both work and have a combined gross income of \$165,000 per year.   They estimate the property taxes on their condo will be \$2,100 and insurance would be about \$1,500 per year.  Kim has a car payment of \$200 per month and they are both still paying off student loans for a combined total of \$600 per month.

a. Suppose the couple can get a 30 year loan with a rate of 3.5%, how much house could they afford based on the payment you found in part a?

Nov 19th, 2017
 Income 165000 yearly Tax 2100 yearly Insurance 1500 yearly Income 13750 monthly Tax 175 monthly Insurance 125 monthly car payment 200 monthly Student loan 600 monthly TOTAL expenditure 1100 monthly Income at disposal 12650 monthly EMI =P*r*(1+r)^n / ((1+r)^n-1) i 0.29167% P =EMI*(1-(1+r)^-n)/r P(@ 50% disposable income as EMI) \$2,928,597 P(@ 20% disposable income as EMI) \$1,171,439 P(@ 30% disposable income as EMI) \$1,757,158 P(@ 40% disposable income as EMI) \$2,342,878 P(@ 60% disposable income as EMI) \$3,514,316 P(@ 10% disposable income as EMI) \$585,719 P(@ 70% disposable income as EMI) \$4,100,036

Apr 13th, 2015

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Nov 19th, 2017
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Nov 19th, 2017
Nov 19th, 2017
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