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What is the highest monthly mortgage payment

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You just got married and would like to buy a house on 1st October 2020. The bank offered a 20-year loan with 3% APR but requires the monthly mortgage payments to be less than one-third the monthly household income, which is $9000.

1. What is the highest monthly mortgage payment you could make with this bank loan?

2. Assuming you will pay 20% of the house with your savings (down payment) and borrow the rest, what's the most expensive house you could buy given the current household income? 3. Make an amortization table for that mortgage on excel, showing the dates of each of the 240 payments (the first payment happens one month after you take the loan) and, for each month, the payment amount, the monthly interest expense, the reduction in principal and the remaining principal.

Reference no: EM132653070

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