The Elliots want to buy a condo in Richmond. Banks use the affordability rule: no more than

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The Elliots want to buy a condo in Richmond. Banks use the affordability rule: no more than 32% of gross monthly household income can go towards paying the mortgage, property taxes, heating costs and 50% of the strata fees. Their gross income is $10,000 per month, property taxes are $2,400/year, heating costs average $50/month and strata fees $400/month. (a) What is the maximum monthly mortgage payment they could afford? Using mortgage qualiying rate of j2 = 5.25%, how large of a mortgage would they qualify for if it is amortized over 25 years and monthly payments? Express your answer in whole number and do not enter "$" sign

Posted Date: May 13, 2024 05:39 AM

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The Elliots want to buy a condo in Richmond. Banks use the affordability rule: no more than

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1 Gross Monthly Income 10000 2 Property Taxes 2400year 200month 3 Heating Costs 50month 4 Strata Fees 400month First calculate the maximum allowable m... View the full answer

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