Question

Your mortgage payment is 954.32/month. Using proportions, what is the minimum what is the yearly amount you have in realized income to keep your housing expense the acceptable range?

Answer 1

Answer:

$40,899.43

Step-by-step explanation:

Assume an acceptable mortgage repayment plan of 27% of pretax monthly income.

Annual realized Income is given by the product of the monthly mortgage payment by 12 months divided by the acceptable rate.

$\frac{Mortgage \Rate}{Acceptable \ Rate\%}*12\\=\frac{954.32}{0.27}*12\\= 42,414.22$

*Note that acceptable rate/proportion is relative and depends on the individual.