Jill and Jack found a nice hilltop home with a water view. It is
a 4-bedroom, 3 bath home, 2800 sq.ft under air on 3.25 acres of land.
The home is listed at $795,000. They have $180,000 to use
as a down payment. They have been preapproved for a 30year
mortgage at 2.75%. Together they make $175,000/yr.
Property tax is $12,000/yr. and insurance will cost $2,300/yr.
What will be their monthly p/i payment? What will their monthly mortgage payment be?
What percent of their GMI will they be spending on the
house? Is it in the 25 to 30% range?
Will they need to pay PMI? (Why/Why not?)
What if the interest rate was 8%? What will their house payment to GMI percentage be? Will they
qualify for a loan at that rate? (Why/Why not?)
(Please I need it TODAY, no links.
Show me the steps of how doing it)
