Victor earns a gross annual income of $64,570 and is buying a home for $125,340. He is making a 15% down payment and financing the rest with a 20-year loan at 3.75% interest.

Monthly mortgage payment per $1000 borrowed: 5.929

Question

Victor earns a gross annual income of $64,570 and is buying a home for $125,340. He is making a 15% down payment and financing the rest with a 20-year loan at 3.75% interest.

Monthly mortgage payment per $1000 borrowed: 5.929

AshtynThatDrummerGirl · Answer

(a) What is the mortgage amount he will borrow?
$125,340 * 15% = $18,801
$125,570 – $18,801 = $106,539

AshtynThatDrummerGirl · Answer

(b) Can he afford this mortgage? Justify your response.
$64,570 * 2 = $129,140 
He can afford ^^^^^^ for a mortgage

AshtynThatDrummerGirl · Answer

(c) What will his monthly mortgage payment be?
I know that he will have 240 payments for the 20 years

AshtynThatDrummerGirl · Answer

(d) What will his total payment for the house be?

AshtynThatDrummerGirl · Answer

(e) What is the amount of interest he will pay?