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 $1,57
5/month the interest rate for the mortgage is 4.65% what must their realized income be before each month and how much interest is paid by the end of the second month
For the answer to the question above, $187,500 is a cost of a house. 20%, or $37,500 is the down payment. The loan amount would be $187,500 - $37,500 = $150,000. If we assume the annual rate of the loan is 4.65% Then the monthly rate would be 4.65%/12 = 0.3875% If the loan is $150,000, the interest is 0.3875% The interest for the first month is $150,000 * 0.3875% = $581.25. You stated that their payment is $1,575. So the amount that pays off the loan is $1,575 - $581.25 = $993.75. At the end of the month, they owe $150,000 - $993.75 = $149,006.25 and for the second month, the amount of the payment that goes towards interest is $149,006.25 * 0.3875% = $577.40. and the amount that goes towards the loan is $997.60.
At the end of the second month, they owe $148,008.65. Regarding they realized income, we recommend a monthly loan payment not to exceed 28% of the monthly income. So if a payment of $1,575 is 28% of Gross, Then it must be : $1,575 = 0.28*Gross. Gross = $5,625 monthly. About $67,500 annually. About $33.75 an hour.
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