Victor earns a gross annual income of $84,482.
The value of home $185,500
He made 15% down payment
Down Payment = 15% of 185500
= 0.15 x 185500
= $27,825
Amount to be borrowed for loan = 185500 - 27825 = $157,675
Loan for 25-years at 4.25% interest.
Number of thousands in 157675 = 157.675
Using table.
Monthly Payment for $1000 = $6.192
Monthly Payment for $157675 = 157.675 x 5.417 = $854.125
Yearly Payment = 12 x 854.125 = $10,249.50
(A) The mortgage amount to be borrowed is $157,675
(B) Yes, He can afford monthly payment because his yearly income is $84,482 and yearly mortgage payment is $10249.50
(C) Monthly Mortgage payment = $854.125
(D) Total number of months = 25 x 12 = 300 Months
(E) Total payment for the house = 854.125 x 300 + 27825= $284,062.5
(F) Interest pay = Total payment - Mortgage borrowed amount
= $98,562.50
