Given that your monthly expenses for the house that you want to purchase totals $1,562.30 (this includes the house payment, annual taxes, and the annual cost for home owners insurance) and your gross annual salary is $66,955.71, determine if you qualify for the purchase of the new home. If yes, what percent do you qualify by?

Question

jhonyy9 · Answer

@acarrillo any idea ?

SmokeyBrown · Answer

Hi acarrillo, and welcome to QuestionCove!
If you're paying $1562.30 per month, how much are you paying per year?
It would be $1562.30 * 12, right? That's equal to $18,747.60 per year. This is less than your annual salary of $66955.71. So, does that mean that you qualify?
I'm not sure I understand the part about percentages. You could calculate the percent of your total income that housing costs. That would just be (18747.60 / 66955.71) * 100 = 28 percent.
This might not be the percent we're looking for, though. The question sounds more like your income needs to be high enough that housing costs less than a certain percent of your total income. In that case, the "percent" that you qualify by would be the difference between the guideline percent and the actual percent.
You know more about the context of the question, so I think you have a better chance of putting that together than I do.