Giselle wants to buy a condo that has a purchase price of $163,000. giselle earns $2,986 a month and wants to spend no more than
25% of her income on her mortgage payment. she has saved up $33,000 for a down payment. giselle is considering the following loan option: 20% down, 30 year at a fixed rate of 6.25%. what modification can be made to this loan to make it a viable option, given giselle’s situation?
The condo costs $163,000, earns $2,986 per month, spends no more than 25% of her income, then if she pays $33,000 for the down payment, the remaining amount would be $130,000. Since 20% of the initial cost is only $32,600, she can adjust her down payment to 20.25% of the initial cost so that the annual payments would be less.
