I need help figuring out how to do the math for this question:

Your parents are buying a house for $187,500. They have a good credit rating, are making a 20% down payment, and expect to pay $1,575/month. The interest rate for the motrgage is 4.65%. What must their realized income be before each month and how much interest is accrued at the end of the second month?

I'm not asking for the answer, I'm asking for someone to help me figure out how to do it.
I know the house cost minus the down payment is $150,000, and housing is supposed to be no more than 28 percent of realised income.

Question

I need help figuring out how to do the math for this question:

Your parents are buying a house for $187,500. They have a good credit rating, are making a 20% down payment, and expect to pay $1,575/month. The interest rate for the motrgage is 4.65%. What must their realized income be before each month and how much interest is accrued at the end of the second month?

I'm not asking for the answer, I'm asking for someone to help me figure out how to do it.
I know the house cost minus the down payment is $150,000, and housing is supposed to be no more than 28 percent of realised income.

anonymous · Answer

Any help would be awesome. Thanks!