Mortgage for house, Suppose you take out a 20-year mortgage

Mortgage for house

Assignment Help Financial Management

Reference no: EM131935567

Suppose you take out a 20-year mortgage for a house that costs $390649. Assume the following: The annual interest rate on the mortgage is 5%. The bank requires a minimum down payment of 14% at the time of the loan. The annual property tax is 2.1% of the cost of the house. The annual homeowner's insurance is 0.7% of the cost of the house. The monthly PMI is $97 Your other long-term debts require payments of $540 per month. If you make the minimum down payment, what is the minimum gross monthly salary you must earn in order to satisfy the 28% rule and the 36% rule simultaneously? Round your answer to the nearest dollar.

Reference no: EM131935567

Questions Cloud

Stock transactions for corporate expansion : Stock Transactions for Corporate Expansion. Journalize the entries to record the foregoing transactions.

Firm is considering two different capital structures : A firm is considering two different capital structures. The first option is an all-equity firm with 40,000 shares of stock.

Magnitude of credit risk for each situation : How exactly do you figure out the magnitude of credit risk for each situation?

Account earns annual interest rate : If the account earns an annual interest rate of 1.4% and the expected annual rate of inflation is 1.2%, how much should you contribute each month to the 401(k)?

Mortgage for house : Suppose you take out a 20-year mortgage for a house that costs $390649.

Prepare journal entry to record the payroll tax expense : Prepare the journal entry to record the payroll tax expense for the period.

Callable bonds-what is the yield to call : Cochran's Furniture Outlet is issuing 25-year, 9 percent callable bonds. What is the yield to call?

Long deemed the most successful advertising medium : Long deemed the most successful advertising medium, television advertising has received increased criticism as being too expensive and, even worse,

Pettway corporation next annual dividend is expected : Pettway Corporation’s next annual dividend is expected to be $4. The growth rate in dividends over the following three years is forecasted at 15%.

User Account

All Pages