1) Compute the down payment, amount financed and monthly mortgage payment (showing how to use the appropriate financial formula)
2) Compute the monthly amount of real estate taxes and add to the monthly mortgage payment to get the total monthly amount paid.
3) Suppose that in order to qualify for the loan, the total monthly amount paid cannot exceed 30 percent of monthly income. What is the minimum monthly income needed? (Note: This is a simplified minimum income requirement calculation, for the purpose of this project, as it does not take into account other costs such as insurance or other loans or assets currently held.)
Asking Price: $599, 500
Property Tax: $5,102 (has not changed from previous year)
Willing to pay: $499, 500
Current market interest rate for 30 year with 20% down ($119,900): 4.0.74%
Down Payment: $119,900
Amount Financed:
Monthly Mortgage Payment: $3,001
Read more: Compute the down payment, amount financed and monthly mortgage payment Algebra 101?
