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 mortgage is 4.65%. How much interest is accrued at the end of the second month?

Answer 1

. Let me do my best. 
$187,500 is cost of 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 interst 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 

For the second month, the amount of the payment that goes towards interst 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 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 the math is : $1,575 = 0.28*Gross. 
Gross = $5,625 monthly. 
About $67,500 annually. 
About $33.75 an hour.