Monthly payment-principal and interest

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Reference no: EM13922094

You wish to qualify for a $200,000 mortgage. Your monthly payment (principal and interest) must not exceed 25% of your monthly income. Your monthly payment plus taxes and insurance must not exceed 28% of your monthly income. Your monthly payment, taxes, and insurance and other debt payments must not exceed 33% of your monthly income. The loan is for 30 years. Interest rates for these loans are 7%. Taxes and Insurance are $250 per month and you have a $300 car loan as your only other debt. Which of the following best describes how high your monthly income needs to be for you to qualify?

a) 5,500 b) 5,600 c) 5,650 d) 5,700 e) 5,750

Reference no: EM13922094

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