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How much money will the bank loan you

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You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of the loan value. You have an annual salary of $36,000 (monthly income $3000), 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 (.5% per month) for a 30-year fixed rate loan. How much money will the bank loan you? How much can you offer for the house?

a. How much is the Bank loan?

b. How much is the closing costs?

c. How much is the total price?

Reference no: EM132548345

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