Assume you are planning on spending a certain amount of income towards a mortgage. The terms of the mortgage are 7.29% APR for 30 years. You plan on spending 25% of your monthly gross income of (81,000) towards your mortgage. show both formulas that you used in Excel to get the house prices. If you spend 25% of your monthly salary towards a house, what is the highest price house you can afford? What is the highest priced house a high school graduate (with an annual salary of $40,000) can afford? Use both an absolute change and relative change statement to compare the house prices of the high school graduate and your house. Assume a standard 7.29% APR and saving 25% towards a house. How many years would it take for your monthly payment to afford the high school graduate's house? In other words, if you used your college monthly salary (25% of gross income), in how many years could you pay off the high school graduate's mortgage?

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Formulas and Calculations 1 Maximum Mortgage Payment To find the maximum monthly mortgage payment you can afford you can use the following formula Exc... View the full answer